When the Smoothing Constant (α)Is Set to 1,then Exponential Smoothing

question 69

Multiple Choice

When the smoothing constant (α) is set to 1,then exponential smoothing is equivalent to ______.

• A)naïve approach
• B)weighted moving average
• C)moving average
• D)factor rating method

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Definitions:

Asset Improvements

Expenditures made to increase the useful life, efficiency, or productive capacity of an asset, typically capitalized and amortized over time.

Ordinary Maintenance

Refers to routine upkeep and repairs necessary to maintain assets in their current condition without improving or extending their life.

Long-Lived Assets

Tangible or intangible resources owned by a company with a useful life extending beyond one year, such as buildings, equipment, and patents.

Sales Taxes

Taxes imposed by governments on sales of goods and services, collected by the seller.