Exhibit 11.2
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using weighted moving averages.
-Refer to Exhibit 11.2. What would be the forecasted value for time period 13?
A) 83.024.
B) 80.796.
C) 79.245.
D) 79.908.

Question

Exhibit 11.2
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using weighted moving averages. 
-Refer to Exhibit 11.2. What would be the forecasted value for time period 13?
A) 83.024. 
B) 80.796. 
C) 79.245. 
D) 79.908.

Quizplus · Accepted Answer

The forecasted value for time period 13 is 83.024. This is because the forecasted value for time period 12 is 80.796, and the growth rate from time period 12 to time period 13 is 2.75%. Therefore, the forecasted value for time period 13 is 80.796 * 1.0275 = 83.024.

Exhibit 11.2 The Following Questions Use the Data Below