Which of the Following Statements Is Not Correct

question 45

Multiple Choice

Which of the following statements is not correct?

• A)A moving average for a time period is the simple arithmetic average of the values in that time period and those close to it.
• B)A value of the smoothing constant w close to 1 results in a very large smoothing, where as a value of w close to zero results in very little smoothing.
• C)The accuracy of the forecast with exponential smoothing decreases rapidly for predictions of the time series more than one period into the future.
• D)A moving average 'forgets' most of the previous time-series values, and is considered a relatively crude method of removing the random variation.

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Definitions:

Discount Period

The time frame during which a payment can be made at a reduced rate before the full amount becomes due.

Annual Interest

The total amount of interest payable or receivable over one year, depending on whether the context is savings, investment, or a loan.

Credit

An accounting entry that increases liabilities and equity, or decreases an asset or expense account, representing the opposite of a debit.

Sales Discounts

Reductions from the listed or invoice price of goods or services provided to customers, often used as an incentive for early payment.