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CTP · Question #483

CTP Question #483: Real Exam Question with Answer & Explanation

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

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