If a Researcher Is Using Exponential Smoothing and Determines That

question 57

Multiple Choice

If a researcher is using exponential smoothing and determines that the forecast for the next period (F_{t + 1}) is the weighted average of the actual value for the previous period (X_t) and the forecast value for the previous period (F_t) , with weights of 1 and 3 respectively, then α = ______.

• A)0.25
• B)0.33
• C)0.67
• D)0.75
• E)0.90

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Definitions:

Efficiency

The optimal use of resources to achieve the desired outcome with minimum waste or effort.

Redistributing Income

The transfer of income from certain individuals or groups to others through mechanisms like taxation, social security, and welfare programs, aiming at reducing income inequality.

Tradeoff

An exchange where one quality or aspect must be given up in order to gain another quality or aspect.

Efficiency

The optimal allocation of resources to maximize the production of goods and services or the achievement of a given objective with the least amount of waste.