Which Is not a Characteristic of Exponential Smoothing

question 117

Multiple Choice

Which is not a characteristic of exponential smoothing?

• A) smoothes random variations in the data
• B) easily altered weighting scheme
• C) weights each historical value equally
• D) has minimal data storage requirements
• E) None of the above; they are all characteristics of exponential smoothing.

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Definitions:

Profit-maximizing Level

The output level at which a firm achieves the highest possible profit.

Short-run

In economics, a period wherein at least one input (like capital) is fixed, and firms can only adjust variable inputs (like labor).

Normal Profits

The level of profit necessary to keep a firm in a specific industry or market in the long run, equating to the firm’s opportunity costs.

Profit-maximizing

A business strategy or operational mode where the primary goal is to achieve the maximum possible profits.