In a Simple Exponential Smoothing Model, Which of the Following

question 70

Multiple Choice

In a simple exponential smoothing model, which of the following statements is true?

• A) The forecast values are determined by computing a moving average of the previous 4 data periods if we are working with quarterly data.
• B) The larger the smoothing constant, the more smoothing that takes place in the model.
• C) If the data contain a lot of random or irregular ups and downs, then a larger smoothing constant should be used in an attempt to model these fluctuations.
• D) More smoothing of the data will take place if a smoothing constant value close to zero is used.

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Definitions:

Double Declining-Balance Depreciation

An accelerated depreciation method that double the rate of straight-line depreciation, decreasing the value of assets more quickly.

Accumulated Depreciation Balance

The total amount of depreciation that has been recorded against a fixed asset up to a specific point in time, reflecting the decline in the asset's value.

December 31

December 31 is traditionally the final day of the Gregorian calendar year, and it is often the fiscal year-end for organizations operating on a calendar year basis.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal and consistent manner.