When Using Simple Exponential Smoothing, the Value of the Smoothing

question 4

Multiple Choice

When using simple exponential smoothing, the value of the smoothing constant α cannot be

• A) negative.
• B) greater than zero.
• C) greater than 1.
• D) .99.
• E) negative or greater than 1.

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Definitions:

Percentage Increase

The rate at which a specific quantity grows over a particular period of time, expressed as a fraction of the initial value.

Sales Data

Information related to the sales performance of a company, including volume, trends, and geographical distribution of sales.

Liquidity Ratio

Financial metrics that measure a company's ability to meet its short-term obligations with its liquid assets.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.