THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 18

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.

-The error for the forecast that corresponds to the year 1902 is:

• A)3.38
• B)-14.92
• C)7.71
• D)10.16

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Definitions:

Make-Believe Animals

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Gestalt Principle

A theory in psychology that proposes the human brain organizes visual elements into groups or unified wholes when certain principles are applied, such as similarity, proximity, continuity, and closure.

Similarity

Similarity refers to the cognitive process of recognizing shared attributes or characteristics among different objects, ideas, or phenomena, often facilitating categorization and understanding.

Conversational Rules

Guidelines that govern the flow and manners of verbal interaction, ensuring coherence and mutual understanding among participants.