Which of the Following Forecasting Methods Puts the Least Weight $\alpha$

question 44

Multiple Choice

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

• A)exponential smoothing with \(\alpha\) = .3
• B)exponential smoothing with \(\alpha\) = .2
• C)moving average using the most recent 4 periods
• D)moving average using the most recent 3 periods

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Definitions:

Shareholders' Equity

It represents the net assets of a company, calculated as total assets minus total liabilities, and is the ownership interest of the shareholders.

Goodwill Element

The portion of the purchase price in a business combination that exceeds the fair value of the net identifiable assets of the acquired entity, representing intangible assets like brand reputation or customer relationships.

Dividend Paid

Cash or stock distributed by a company to its shareholders from its profits or reserves as a return on investment.

Unrealised Profits

Profits that have been recorded on the books through an accounting entry but have not actually been realized through the receipt of cash or other assets.