A Parameter of the Exponential Smoothing Model That Provides the Weight

question 6

Multiple Choice

A parameter of the exponential smoothing model that provides the weight given to the most recent time series value in the calculation of the forecast value is known as the

• A) mean squared error.
• B) mean absolute error.
• C) smoothing constant.
• D) exponential estimate.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset which spreads the cost evenly across the useful life of the asset.

Prior Period Adjustment

Adjustments made to the financial statements to correct errors or inaccuracies from previous periods.

Residual Value

The estimated salvage value an asset will have at the end of its useful life.

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods in a manufacturing facility.