As a Consultant, You Have Been Thinking About Choosing the "Right

question 64

Multiple Choice

As a consultant, you have been thinking about choosing the "right" alpha (smoothing constant) for forecasting using exponential smoothing. Which of the following is most accurate about alpha?
A. If alpha is high, speed of reaction to changes in actually low.
B. If a firm produces standard product with relatively stable demand, alpha should be small.
C. Products experiencing growth should be assigned higher alpha value.
D. Alpha could be more than 1.0, and in this case (1-alpha) will become negative to make up for it.

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice B and C

Comprehend the mechanisms to break the vicious circle of poverty in developing nations, particularly through capital accumulation.

Recognize the significance of saving rates and their implications for investment and growth in developing countries.

Identify sociocultural impediments to economic growth and how they affect developing nations.

Understand characteristics common in developing nations, including low levels of saving and investment.

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Definitions:

Per Unit

A term used to define the cost, price, or quantity relative to a single unit of a product or service.

Political Risk

The likelihood of financial loss or other adverse effects on investment outcomes due to political instability, government actions, or geopolitical tensions in a region.

Cultural Issues

Differences in beliefs, values, practices, and behaviors among people from different backgrounds, which can impact interactions and create challenges in various contexts.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another.