Author Question: In a simple exponential smoothing model, which of the following statements is true? A) The ... (Read 126 times)

naturalchemist

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In a simple exponential smoothing model, which of the following statements is true?
 
  A) The forecast values are determined by computing a moving average of the previous 4 data periods if we are working with quarterly data.
  B) The larger the smoothing constant, the more smoothing that takes place in the model.
  C) If the data contain a lot of random or irregular ups and downs, then a larger smoothing constant should be used in an attempt to model these fluctuations.
  D) More smoothing of the data will take place if a smoothing constant value close to zero is used.

Question 2

Which of the following forecasting methods allows the decision maker to weigh the past time series differently to make the model more sensitive to more recent data?
 
  A) Linear trend regression model
  B) Moving average model
  C) Exponential smoothing
  D) Deseasonalizing the time series



Jordin Calloway

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Answer to Question 1

D

Answer to Question 2

C



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