The President of State University Wants to Forecast Student Enrollment

question 61

Multiple Choice

The president of State University wants to forecast student enrollment for this academic year based on the following historical data:
$$\begin{array} { | c | c | } \hline \text { Year } & \text { Enrollnents } \\\hline 5 \text { years ago } & 15,000 \\\hline 4 \text { years ago } & 16,000 \\\hline 3 \text { years ago } & 18,000 \\\hline \text { 2 years ago } & 20,000 \\\hline \text { Luast year } & 21,000 \\\hline\end{array}$$
What is the forecast for this year using exponential smoothing with trend if ? = 0.5 and ? = 0.3? Assume the forecast for last year was 21,000 and the forecast for two years ago was 19,000, and that the trend estimate for last year's forecast was 1,500.

• A) 18,750
• B) 19,500
• C) 21,000
• D) 22,500
• E) 22,800

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Definitions:

FIFO Method

First-In, First-Out, an inventory valuation method where the oldest inventory items are sold or used first.