Suppose That Demand in Period 1 Was 7 Units and the Demand

question 114

Multiple Choice

Suppose that demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3? (Round answers to two decimal places.)

• A) 9.00
• B) 3.72
• C) 9.48
• D) 5.00
• E) 6.12

Understand the concepts of discount, par, and premium selling conditions of bonds.

Grasp the concept of maturity risk and its influence on bond prices.

Recognize the roles of bond indentures and their importance in the bond market.

Understand different types of bonds and their relative risk and interest rate levels.

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