Which of the Following Values of Alpha Would Cause Exponential

question 150

Multiple Choice

Which of the following values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

• A) 0.10
• B) 0.20
• C) 0.40
• D) 0.80
• E) cannot be determined

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the incremental rate applied to income in the highest tax bracket.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (income, expenditure, or asset), represented as a percentage.

Proportional

Characterized by or corresponding in size, degree, or intensity according to a fixed ratio or relationship.

Price Elasticity

A measure indicating how much the quantity demanded of a good responds to a change in its price, often illustrating the sensitivity of demand to price changes.