Which of the Following Forecasting Methods Puts the Least Weight

question 6

Multiple Choice

Which of the following forecasting methods puts the least weight on the most recent time series value?

• A) exponential smoothing with α = .3
• B) exponential smoothing with α = .2
• C) moving average using the most recent four periods
• D) moving average using the most recent three periods

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Definitions:

Periodic Cash Payments

Payments made regularly over a period of time, such as dividends or loan repayments.

Lease Rental Expense

An expense incurred from leasing an asset, which is typically recorded on a lessee's income statement.

Lease Liability

An obligation representing the present value of leasing payments due under a lease agreement.

Current Portion

The portion of a long-term liability that is due to be paid within the next twelve months.