Which of the Following Smoothing Constants Would Make an Exponential

question 71

Multiple Choice

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

• A) 0
• B) 1 divided by the number of periods
• C) 0.5
• D) 1.0
• E) cannot be determined

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Definitions:

High Inflation

A situation where the price level of goods and services rises rapidly and consistently, eroding purchasing power.

Inflation

The speed at which the overall price level for goods and services increases, leading to a decrease in purchasing power.

Economy's Price Level

The general level of prices for goods and services across an economy, indicating the purchasing power of the country's currency.

Labor Force

The total number of people employed and unemployed, available for work, and actively seeking employment.