When the Underlying Mean of a Time Series Changes Frequently

question 59

Multiple Choice

When the underlying mean of a time series changes frequently but there is no trend, cyclical, or seasonal influence,

• A) an exponential smoothing forecast with alpha = 0.01 should outperform a exponential smoothing forecast with alpha = 0.30.
• 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) a simple moving average forecast with n = 20 should outperform a simple moving average forecast with n = 3.

---

Definitions:

Journalism

Journalism is the practice of gathering, assessing, creating, and presenting news and information for various media to inform the public.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Manipulation

The act of controlling or influencing someone or something in an unfair or deceitful way.

Infotainment

A blend of information and entertainment, often seen in media formats that present factual news or educational content in an engaging or entertaining manner.