Answered: Consider the following daily net cash…

Consider the following daily net cash flows: Day NCF 1 $15,000 2 17,000 3 13,000 4 20,000 5 14,000 What is the mean absolute deviation for the moving average forecast with the 2-day window length?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter9: Forecasting Exchange Rates

Section: Chapter Questions

Problem 6BIC

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

D4)

Consider the following daily net cash flows:
Day NCF
1 $15,000
2 17,000
3 13,000
4 20,000
5 14,000
What is the mean absolute deviation for the moving average forecast with the 2-day window length?

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