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Chapter 26

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Chapter 26

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • November 7, 2011 at 2:21 pm #50368
    myz2004
    Member
    • Topics: 5
    • Replies: 2
    • ☆

    I have some inquires regarding ‘ Forecasting’of chapter 26.
    1) on page 92, ‘the trend adjusted for seasonal variations’ says: ‘ we could say that the trend has moved from 2702 to 2451 in 7 jumps , this is (2702-2451)/7=36/season.
    I want to say that figure 2702 can not be found from the above diagram, just 2720 can be found. Meanwhiel, (2720-2451)/7=38/season, not 36.

    2) on page 93, ‘Exponential smoothing’, the prediction for Q3/Yr3
    75%*2832+25%*2451=2736, the calculation based on last time’s actual resluts and last time’s predicted results.

    But for the prediction for Q4/Yr 3,
    75%*1920+25%*2737=2,124
    according to the explanation of ‘exponential smoothing’, the predicted results should be based on the last last time’s actual resluts and last time’s predicted results.

    I guess the prediction for Q4/Yr 3, should be:
    75%*2160+25%*2737=2304.

    Could anyone can help to have a look at these inquiries?

    November 7, 2011 at 5:21 pm #89412
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    1) on page 92, ‘the trend adjusted for seasonal variations’ says: ‘ we could say that the trend has moved from 2702 to 2451 in 7 jumps , this is (2702-2451)/7=36/season.
    I want to say that figure 2702 can not be found from the above diagram, just 2720 can be found. Meanwhiel, (2720-2451)/7=38/season, not 36.

    Thank you. You are correct. It should have been 2720 and 38 per season

    2) on page 93, ‘Exponential smoothing’, the prediction for Q3/Yr3
    75%*2832+25%*2451=2736, the calculation based on last time’s actual resluts and last time’s predicted results.

    But for the prediction for Q4/Yr 3,
    75%*1920+25%*2737=2,124
    according to the explanation of ‘exponential smoothing’, the predicted results should be based on the last last time’s actual resluts and last time’s predicted results.

    I guess the prediction for Q4/Yr 3, should be:
    75%*2160+25%*2737=2304.
    Again, you are correct

    Thank you for spotting these errors (you are the first person to comment in over a year!). We will change it as soon as we can

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