If We Use a Value Close to 1 for the Smoothing

question 74

True/False

If we use a value close to 1 for the smoothing constant in a simple exponential smoothing model, then we expect the model to respond very slowly to changes in the level.

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Definitions:

Common Measures Bias

A bias that occurs when survey respondents use common scales to make their answers seem more socially acceptable or favorable.

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, whereby conclusions about other people and situations may be drawn in an illogical fashion.

Performance of Divisions

Evaluation of each segment or department within a company based on their financial results, productivity, and efficiency.

Cognitive Bias

An organized tendency to deviate from normal or logical thinking in making judgments, leading to conclusions about people and situations that are drawn illogically.