Smoothing a Time Series of Observations

question 12

Multiple Choice

Smoothing a time series of observations

• A)is a form of statistical cheating.
• B)is used to reveal an underlying pattern in the data.
• C)renders the resultant forecast unusable.
• D)allows statisticians to use less data than would otherwise be required.

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Definitions:

Net Price

The actual price paid for a product or service after all discounts, rebates, and other reductions have been applied.

Discount Method

A financial calculation technique used to determine the present value of future cash flows or payments by applying a specific discount rate.

Discount Date

The last day on which a cash discount may be taken. The day on which a note is discounted (sold).

Due Date

The final day an invoice is to be paid. After that day the buyer may be charged interest. Also, the date by which a loan is to be repaid.