Author Question: In the first-order exponential smoothing model, the new forecast is equal to a weighted average of ... (Read 125 times)

shofmannx20 · **on:** Jul 1, 2018

In the first-order exponential smoothing model, the new forecast is equal to a weighted average of the old forecast and the actual value in the most recent period.
a. true b. false

Question 2

When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost
b. It is OK if the product on the market includes costly features your downstream division does not use
c. It is OK if the product on the market is inexpensive because its quality is lower than you use
d. If it is similar enough, it calls into question whether there are gains from producing it in-house