Use the information in problem 5 to determine the value for a that produces the most accurate ES fore- cast. Use three values for a: 0.6, 0.8, and 0.4. Base your answer on the MAD. Use a forecasted NCF of $16,000 (calculated using a 2-Day MA) for Day 3. Day 1 2 3 4 5 Net Cash Flow 15,000 17,000 13,000 20,000 14,000
Use the information in problem 5 to determine the value for a that produces the most accurate ES fore- cast. Use three values for a: 0.6, 0.8, and 0.4. Base your answer on the MAD. Use a forecasted NCF of $16,000 (calculated using a 2-Day MA) for Day 3. Day 1 2 3 4 5 Net Cash Flow 15,000 17,000 13,000 20,000 14,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Use the information in problem 5 to determine the value for a that produces the most accurate ES fore-
cast. Use three values for a: 0.6, 0.8, and 0.4. Base your answer on the MAD. Use a forecasted NCF of
$16,000 (calculated using a 2-Day MA) for Day 3.
Day
1
2
3
4
5
Net Cash Flow
15,000
17,000
13,000
20,000
14,000
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