In Exponentially Smoothed Time Series,the Smoothing Constant W Is Chosen

question 35

Multiple Choice

In exponentially smoothed time series,the smoothing constant w is chosen on the basis of how much smoothing is required.In general,which of the following statements is true?

• A)A small value of w such as w = 0.1 results in very little smoothing,while a large value such as w = 0.8 results in too much smoothing
• B)A small value of w such as w = 0.1 results in too much smoothing,which a large value such as w = 0.8 results in very little smoothing
• C)A small value of w such as w = 0.1 and a large value such as w = 0.8 may both result in very little smoothing
• D)A small value of w such as w = 0.1 and a large value such as w = 0.8 may both result in too much smoothing

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Definitions:

Book Value

The net value of an asset or liability recorded on the balance sheet, often different than its fair market value.

Building Account

An account used to track the costs associated with the construction or improvement of a building until the project is completed and the asset is ready for use.

Adjusted Trial Balances

An internal document that lists all accounts and their balances after adjustments are made for errors, accruals, and deferrals, used for preparing financial statements.

Adjusting Entries

Financial records made upon the completion of an accounting cycle to allocate gains and deductions to the actual period in which they occurred.