Exponential smoothing method

Assignment Help Finance Basics
Reference no: EM131919403

The business analyst for Ace Business Machines, Inc. wants to forecast this year's demand for manual typewriters based on the following historical data:

Time Period            Demand

5 years ago      900

4 years ago      700

3 years ago      600

2 years ago      500

Last year          300

A) What is the forecast for this year using a moving-average forecast based on the last three years?

B) What is the forecast for the next period using exponential smoothing method with a alpha  factor of 0.4  a = 0.4

Reference no: EM131919403

Questions Cloud

What information do you need to calculate the present value : Suppose you are selling a piece of furniture to a friend who can't afford to pay. What information do you need to calculate the present value of this offer?
What is expected return on this investment : If the probability for rapid growth is 15% or 20% for decline, and 65 % chance for slow growth, what is the expected return on this investment?
What is the operating cash flow : That is, depreciation each year is $13,228/7. The tax rate is 36 percent. What is the operating cash flow?
What is the nopat margin for company y : What is the NOPAT margin for Company Y? What strategic actions do you recommend to the managements of the respective companies?
Exponential smoothing method : What is the forecast for the next period using exponential smoothing method with a alpha factor of 0.4 a = 0.4
How much additional debt will you need to issue : Your firm has an ROE of 12%, a payout ratio of 25%, $700,000 of stockholders' equity, and $300,000 of debt. If you grow at your sustainable growth rate
Examine what should be the production order quantity : Bryson Carpet Mills produces a variety of different carpets. Changing from production of one carpet to another involves a setup cost of $1,000.
What is the initial cash outlay : Working capital is anticipated to be variable at 10% of revenues; the working capital investment must be made at the beginning of each period and will be recapt
Shares of stock outstanding : The market value statement of financial position for Vern's Variety is shown below. There are 5,000 shares of stock outstanding.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find what is the after tax cash flow from sale of this asset

The relevant tax rate is 30 percent. What is the after tax cash flow from the sale of this asset?

  Nbspa 7 percent bond has a yield to maturity of 675

nbspa 7 percent bond has a yield to maturity of 6.75 percent 10 years to maturity a face value of 1000 and semiannual

  Calculate the cost of the chairs

Describe the circumstances when a job order costing system should be used and Calculate,showing working, the balance in Turramurra Furniture Companys Work

  Financial systems and markets

Explain at least two (2) ways financial systems and markets have had an impact in your life in the past or may impact you in the future.

  Make an identical deposit

Today is your birthday and you decide to start saving for college. You will begin college on your 18th birthday and will need $4,000 per year at the end of each of the next 4 years (after that 18th birthday - isn't it nice the college lets you pa..

  What lump sum deposited today

What lump sum deposited today at 8% compounded quarterly for 10 years will yield the same final amount as deposits of $4000 at the end of each 6 month period for 10 years at 4% compounded semiannually?

  How much in properly accounting for uncertain tax position

In Year 1, determine which accounts MB would debit and credit and for how much in properly accounting for this uncertain tax position.

  Set up an amortization schedule

Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 10%, compounded annually, and the annual payment is $ 6,594.94.

  Npv profiles-project irr-project mirr

Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows:

  Which selection of µ would make e-rt xt a martingale

This exercise deals with obtaining martingales. Suppose Xt is a geometric process with drift μ and diffusion parameter σ.(a) When would the e-rt Xt be a martingale? That is, when would the following equality hold. (b) More precisely, remember from th..

  What is the companys breakeven point

A company's fixed operating costs are $690,000, its variable costs are $3.50 per unit, and the product's sales price is $4.05. What is the company's breakeven point; that is, at what unit sales volume will its income equal its costs? units

  Five steps in the financial plan

The book identifies five steps in the financial plan which step(s) is (are) the most critical, explain your rationale

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd