As the Smoothing Constant, Alpha, Is Reduced

question 21

Multiple Choice

As the smoothing constant, alpha, is reduced:

• A)the forecasts are more sensitive to trend influences.
• B)the weights given to prior periods' data become more uniform.
• C)cyclical/seasonal factors are more easily discernible.
• D)the computational complexity of forecasting increases.

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Definitions:

Pascal's Triangle

Pascal's Triangle is a triangular array of binomial coefficients, with each row constructing the coefficients of the expansions of a binomial raised to consecutive powers.

Expression

A combination of symbols that jointly represent a quantity; may include numbers, variables, and operation symbols.

\(x\)

A symbol commonly used to denote a variable in equations and functions.

Binomial Theorem

A fundamental theorem in algebra that describes the algebraic expansion of powers of a binomial.