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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