The Usual Range of the Smoothing Constant for a Simple

question 13

Multiple Choice

The usual range of the smoothing constant for a simple exponential smoothing forecast is ________.

• A) 0.1 - 0.5
• B) 0.3 - 0.7
• C) 0.5 - 0.7
• D) 0.5 - 1.0

---

Definitions:

GDP Per Capita

The measure of a country's economic output per person, adjusting for its population size.

Leader

In a financial context, a company, stock, or security that outperforms its peers or the market, often used to indicate trends.

EAFE Index

An equity index that represents the stock performance of developed markets outside of the U.S. and Canada.

Weighting

The process of assigning different importance or values to certain elements in calculations, such as the components of a stock index or risk factors.