The Smoothing Constant,α,in the Exponential Smoothing Forecast

question 83

Multiple Choice

The smoothing constant,α,in the exponential smoothing forecast

• A)must always be a value greater than 1.0.
• B)must always be a value less than 0.10.
• C)must be a value between 0.0 and 1.0.
• D)should be equal to the time frame for the forecast.

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Definitions:

Diseconomies of Scale

The situation when a firm’s average total cost of producing a product increases in the long run as the firm increases the size of its plant (and, hence, its output).

Underutilized

Refers to resources or capacities not being used to their full potential, often implying inefficiency or lost productivity.

Misleading Advertising

Promotional activities that intentionally or unintentionally deceive consumers about the virtues of a product or service.

Oligopolistic Market

A market structure characterized by a few firms dominating the market, where each firm is aware of the other's actions, often leading to competitive strategies.