In Order to Increase the Responsiveness of a Forecast Made

question 3

Multiple Choice

In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be:

• A)decreased.
• B)increased.
• C)multiplied by a larger alpha.
• D)multiplied by a smaller alpha.
• E)eliminated if the MAD is greater than the MSE.

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Definitions:

Producer Surplus

The contrast between the price at which producers are willing to sell a good or service and the price they actually secure.

Producer Surplus

The difference between the amount a producer is willing to accept for a good and the actual amount received due to higher market price.

Consumer Surplus

The discrepancy between the potential total expenditure consumers are willing to make on a good or service and the actual costs they incur.

Government Revenue

The total income received by the government from various sources, including taxes, fees, fines, and the sale of goods and services.