In September, there were 1,035 checking- account customers at a neighborhood bank. The forecast for September, which was made in August, was for 1,065 checking-account customers. Use an a of 0.1 to update the forecast for October. F= Ft-1 + α(At-1- Ft-1)

In September, there were 1,035 checking- account customers at a neighborhood bank. The forecast for September, which was made in August, was for 1,065 checking-account customers. Use an a of 0.1 to update the forecast for October. F= Ft-1 + α(At-1- Ft-1)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Receivables Management

Question

14.1.
In September, there were 1,035 checking-
account customers at a neighborhood
bank. The forecast for September, which
was made in August, was for 1,065
checking-account customers. Use an a of
0.1 to update the forecast for October.
F= Ft-1 + a(At-1 - Ft-1)
F₁ = 1,065 +0.1(1,035 - 1,065)
F₁ = 1,065 +0.1(-30)
F₁ = 1,065 + -3
F₁ = 1,062

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