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Exhibit 18

Question 1

Multiple Choice

Exhibit 18.2.The following table includes the information about a monthly time series. Exhibit 18.2.The following table includes the information about a monthly time series.   Refer to Exhibit 18.2.When the exponential smoothing method with α = 0.1 and α = 0.5 is applied,what is the speed of decline for which the mean absolute deviation (MAD) is better? What is this mean? A) α = 0.1 and MAD = 3.05 B) α = 0.1 and MAD = 3.00 C) α = 0.5 and MAD = 3.00 D) α = 0.5 and MAD = 3.05 Refer to Exhibit 18.2.When the exponential smoothing method with α = 0.1 and α = 0.5 is applied,what is the speed of decline for which the mean absolute deviation (MAD) is better? What is this mean?


A) α = 0.1 and MAD = 3.05
B) α = 0.1 and MAD = 3.00
C) α = 0.5 and MAD = 3.00
D) α = 0.5 and MAD = 3.05

Correct Answer:

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