Use of a Smoothing Constant Value Greater Than 0

question 71

Multiple Choice

Use of a smoothing constant value greater than 0.5 in an exponential smoothing model gives more weight to ___________.

• A)the actual value for the current period
• B)the actual value for the previous period
• C)the forecast for the current period
• D)the forecast for the previous period
• E)the forecast for the next period

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Definitions:

Macropolicy

Policies designed to influence the overall economy, focusing on macroeconomic factors like inflation, unemployment, and economic growth.

World Economy

An international system of economic activities and transactions that transcends national borders, involving the global interconnection of economies through trade, investment, and financial markets.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Foreign Investors

Individuals or companies from one country investing in assets or businesses in another country, influencing the host country's economy.