If the Random Variability in a Time Series Is Great $\alpha$

question 33

True/False

If the random variability in a time series is great and exponential smoothing is being used to forecast, then a high alpha ( $\alpha$ ) value should be used.

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Definitions:

Diseconomies Of Scope

Exist when the cost of producing two products jointly is more than the cost of producing those two products separately.

Economies Of Scope

Cost advantages that a business achieves by producing a wider variety of products, rather than specializing in a single product or service.

Average Costs

The total cost of production divided by the number of units produced, representing the cost per unit of output.

Wine Distribution

The process of transporting wine from the manufacturer to various retail locations or directly to consumers.