Author Question: Which of the following statements is the objective of the moving averages and exponential smoothing ... (Read 70 times)

tfester · **on:** Jun 24, 2018

Which of the following statements is the objective of the moving averages and exponential smoothing methods?
a. To maximize forecast accuracy measures
b. To smooth out random fluctuations in the time series
c. To characterize the variable fluctuations by an exponential equation
d. To transform a nonstationary time series into a stationary series

Question 2

The best way to differentiate chart elements is using
a. colors. b. labels.
c. bubbles. d. chart titles.

JYan · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

b
RATIONALE: The objective of the moving averages and exponential smoothing methods is to smooth out random fluctuations in the time series. They are also referred to as smoothing methods.

Answer to Question 2

b
RATIONALE: In many cases, it is preferable to differentiate chart elements with dashed lines, patterns, or labels.