Using the Exponential Smoothing Model for Forecasting,the Smoothing Constant Alpha

question 50

Multiple Choice

Using the exponential smoothing model for forecasting,the smoothing constant alpha determines the level of smoothing and:

• A)The slope of the growth curve
• B)The speed of reaction to differences between forecasts and actual results
• C)The intercept on the Y-axis
• D)The next forecast error
• E)A measure of forecast accuracy

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Definitions:

Market Development

The expansion of a market through the identification and penetration of new market segments or geographic areas.

Microfinance

A type of financial service provided to unemployed or low-income individuals or groups who otherwise lack access to traditional banking services.

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

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Bank accounts that pay interest on the money deposited, meant for saving rather than daily transactions.