Using Exponential Smoothing,if We Want Forecasts to Be Very Responsive

question 16

Multiple Choice

Using exponential smoothing,if we want forecasts to be very responsive to recent demand,the value of alpha should be

• A) large.
• B) moderate.
• C) small.
• D) The value of alpha does not matter.

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Definitions:

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group compared with another, often in a way considered to be unfair.

Journalizing

The process of recording a transaction entry into the journal.

Business Transactions

Financial activities or exchanges involving the transfer of value between entities or parties, affecting the financial position of a business.

Journal

A listing of business transactions in chronological order. The journal links on one page the debit and credit parts of transactions. Alternatively known as general journal.