The Exponential Smoothing Forecasting Technique Slowly Responds to Changes in the Mean

question 5

Multiple Choice

The exponential smoothing forecasting technique slowly responds to changes in the mean level of demand when

• A) a small alpha value is used.
• B) a large alpha value is used.
• C) an alpha value of 1.0 is used.
• D) size of the alpha value does not affect the responsiveness.

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Definitions:

Laissez-faire

A policy or attitude of letting things take their own course, without interfering, often referred to in economics to describe a free-market system with minimal government intervention.

Coercion

The practice of compelling someone to act in an involuntary manner by use of threats or force.

Conformity

Deep-seated, private and enduring change in behaviour and attitudes due to group pressure.

Correlates

Pertains to mutually related factors or variables that have a statistical relationship, indicating that when one changes, the other tends to change in a predictable manner.