Which Is Not a Characteristic of Exponential Smoothing

question 91

Multiple Choice

Which is not a characteristic of exponential smoothing?

• A)smoothes random variations in the data
• B)weights each historical value equally
• C)has an easily altered weighting scheme
• D)has minimal data storage requirements
• E)smoothes real variations in the data

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Definitions:

Bond Premium

The amount by which the market price of a bond exceeds its face value, often occurring when the bond's interest rate is higher than current market rates.

Semiannual Interest

Interest on a loan or security that is calculated and paid twice a year.

Straight-line Method

A depreciation technique that allocates an equal amount of depreciation each year over an asset's useful life.

Times Interest Earned Ratio

A financial metric used to determine how well a company can meet its interest obligations based on current earnings.