An Exponential Smoothing Model Must Have a Smoothing Constant (α)

question 31

Multiple Choice

An exponential smoothing model must have a smoothing constant (α) _____ to be roughly equivalent to a moving average model with a seven-month moving average.

• A) less than or equal to 0.10
• B) more than 0.10 but less than or equal to 0.15
• C) more than 0.15 but less than or equal to 0.20
• D) more than 0.20

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Definitions:

RMBCA

The Revised Model Business Corporation Act (RMBCA) is a set of model laws prepared by the American Bar Association to provide a standard for the governance of corporations.

Pre-incorporation Subscription

An agreement by an investor to purchase shares in a corporation that is yet to be formed, contingent upon the actual incorporation of the company.

Revoked

The action of withdrawing, cancelling, or annulling something previously granted, such as a license, privilege, or legal right.

Single Person

A single person typically refers to an individual not in a marital or committed relationship, often used in demographic and legal contexts.