Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
Q65: The Boxer Company has been in business
Q66: Because simple exponential smoothing models require a
Q67: The purpose of deseasonalizing a time series
Q68: The Zocor Company is interested in forecasting
Q69: The All American Toy Company has records
Q71: If the historical data on which the
Q72: In order for a time series to
Q73: A company has recorded annual sales for
Q74: In a recent meeting, a manager indicated
Q75: A company's annual sales are shown below