In an Exponentially Smoothed Time Series, the Smoothing Constant W

question 47

Multiple Choice

In an exponentially smoothed time series, the smoothing constant w is chosen on the basis of how much smoothing is required. In general:

• A)a small value of w, such as w = 0.1, results in very little smoothing, while a large value, such as w = 0.8, results in too much smoothing.
• B)a small value of w, such as w = 0.1, results in too much smoothing, while a large value such as w = 0.8, results in very little smoothing.
• C)a small value of w, such as w = 0.1, and a large value, such as w = 0.8, may both result in very little smoothing.
• D)a small value of w, such as w = 0.1, and a large value, such as w = 0.8, may both result in too much smoothing.

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Definitions:

Accrued Salaries

Salaries and wages that have been earned by employees but not yet paid by the company, classified as a current liability.

Salary Expense

The total amount paid to employees in the form of salaries over a specific period of time as a part of operational costs.

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Obligations a company owes to external parties, which can include loans, accounts payable, and other debts.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, serving as the basis for financial statements preparation.