Which of the Following Is True of the Exponential Smoothing

question 14

Multiple Choice

Which of the following is true of the exponential smoothing coefficient?

• A)It is a randomly generated value between -1 and +1.
• B)It is small for a time series that has relatively little random variability.
• C)It is chosen as the value that minimizes a selected measure of forecast accuracy such as the mean squared error.
• D)It is computed in relation with the order value, k, for the moving averages.

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Definitions:

Total Output

The total quantity of goods and services produced by an economy or firm during a specific period.

Marginal Cost

The cost incurred by producing one more unit of a product or service.

TVC

TVC, or Total Variable Cost, encompasses the expenses that change in direct relation to the level of output produced, such as raw materials and labor costs.

TFC

Total Fixed Costs, which are expenses that do not change regardless of the level of production or business activity.