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CTP · Question #483

(Topic 5) Company XYZ uses exponential smoothing to forecast its daily lockbox receipts. With the help of a statistical computer program, the company has determined that the smoothing constant is…

The correct answer is C. $27,790. See the full explanation below for the reasoning.

Question

  • (Topic 5)

Company XYZ uses exponential smoothing to forecast its daily lockbox receipts. With the help of a statistical computer program, the company has determined that the smoothing constant is 0.35. Using the data in the table, what is the exponential smoothing forecast for Day 7 (rounded to the nearest whole $)?

Options

  • A$26,600
  • B$27,167
  • C$27,790
  • D$28,810

How the community answered

(41 responses)
  • A
    7% (3)
  • B
    5% (2)
  • C
    76% (31)
  • D
    12% (5)

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