The Moving Averages and Exponential Smoothing Methods Are Appropriate for a Time

question 39

Multiple Choice

The moving averages and exponential smoothing methods are appropriate for a time series exhibiting

• A)a horizontal pattern.
• B)a cyclical pattern.
• C)trends.
• D)seasonal effects.

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Definitions:

Inflation

The tempo with which the broad level of prices for services and goods lifts, diminishing the power of purchase.

Real Value

The value of an object, service, or currency adjusted for inflation, representing its purchasing power.

Nominal Dollars

Nominal dollars refer to the amount of money expressed in current values, without adjustment for inflation, representing the "face value" of currency.

Fixed Incomes

Fixed incomes refer to types of investment that pay regular interest or dividends to investors and have the principal amount returned at maturity.