When the Underlying Mean of a Time Series Is Very

question 16

Multiple Choice

When the underlying mean of a time series is very stable and there are no trend,cyclical,or seasonal influences,

• A) a simple moving average forecast with n = 20 should outperform a simple moving average forecast with n = 3.
• B) a simple moving average forecast with n = 3 should outperform a simple moving average forecast with n = 20.
• C) a simple moving average forecast with n = 20 should perform about the same as a simple moving average forecast with n = 3.
• D) an exponential smoothing forecast with alpha = 0.30 should outperform a exponential smoothing forecast with alpha = 0.01.

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Definitions:

Janitorial Department

A division within an organization dedicated to the maintenance and cleaning of buildings and facilities.

Allocated Based on Space

The distribution of resources or costs among departments or projects according to the physical area they occupy or require.

Personnel Department Cost

Expenses related to the operation of a human resources department, including salaries, training, and benefits administration.

Step-Down Method

An accounting method used to allocate the costs of service departments to producing departments and other service departments in a sequence.