Which of the Following Forecasting Methods Puts the Least Weight

question 48

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 4 periods
• D) moving average using the most recent 3 periods

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Definitions:

Financial Analysts

Professionals who evaluate investments, financial data, and economic trends to help make investment decisions or manage financial portfolios.

Currency Values

The worth of one country's currency in terms of another's, influenced by economic conditions and political stability.

Currency Cross Rate

The exchange rate between two currencies, calculated based on their common exchange rates with a third currency, usually the US dollar, without needing direct exchange between the two currencies.

Exchange Rate

The price at which one currency can be exchanged for another currency.