Which of the Following Is Not an Advantage of Exponential

question 25

Multiple Choice

Which of the following is not an advantage of exponential smoothing?

• A) It enables you to perform one-period ahead forecasting.
• B) It enables you to perform more than one-period ahead forecasting.
• C) It enables you to smooth out seasonal components.
• D) It enables you to smooth out cyclical components.

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Definitions:

Price Elasticity

An indicator of the variation in the amount of a product desired by consumers as its cost fluctuates.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Complementary Goods

Products or services that are typically consumed together, where the demand for one increases the demand for the other.

Inelastic

Describing demand that changes little with price fluctuations; consumers’ buying habits are not significantly affected by price changes.