Smoothing a Time Series of Observations

question 12

Multiple Choice

Smoothing a time series of observations

• A)is a form of statistical cheating.
• B)is used to reveal an underlying pattern in the data.
• C)renders the resultant forecast unusable.
• D)allows statisticians to use less data than would otherwise be required.

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Definitions:

Investments

Assets or commodities acquired with the intention of generating income or appreciating in value over time.

Cash Quickly

A term referring to methods or strategies used to obtain liquid funds in a short period of time.

Present Value Factor

A number by which a future payment is multiplied to determine its present value.

Annuity

An economic scheme that delivers fixed periodic earnings to recipients, usually serving as financial support for those retired.