THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 70

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 component in a time series that reflects a long-term,relatively smooth pattern or direction exhibited by a time series over a long time period (more than one year) is called the:

• A)trend component.
• B)cyclical component.
• C)seasonal component.
• D)irregular component.

---

Definitions:

Monthly Payments

Recurring payments made once per month, often in the context of loan repayments or subscriptions.

Compounded Annually

Interest calculation method where interest is added to the principal at the end of each year, enabling interest to be earned on interest in the following year.

Monthly Payments

Regular payments made every month, typically in the context of repaying loans or paying for services.

Borrow

To receive something of value with the promise to return it or its equivalent to the lender at a future date.