When Using Exponential Smoothing, If You Want the Forecast to React

question 57

Multiple Choice

When using exponential smoothing, if you want the forecast to react quickly to movements in the series, you should choose:

• A) values of near 1
• B) values of near 0
• C) values of midway between 0 and 1
• D) the values based on the particular data set

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Definitions:

Defensive Industry

Industries that are relatively unaffected by economic cycles and fluctuations, such as utilities and consumer staples, because their products are always in demand.

Automobile Industry

A global sector that involves the design, development, manufacturing, marketing, and selling of motor vehicles.

Food Industry

The sector that covers the processing, preparation, and distribution of food products from agricultural production to consumers.

Total Revenue

The total income generated by a company from its business activities before any expenses are subtracted.