An Alpha $\alpha$ ) Value of $\alpha$ Equal to 4

question 19

True/False

An alpha ( $\alpha$ ) value of .2 will cause an exponential smoothing forecast to react more quickly to a sudden drop in demand than will an $\alpha$ equal to .4.

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Definitions:

Consumer Surplus

The separation between what consumers envisage paying for a good or service and the amount they actually disburse.

Producer Surplus

The gap between the price that sellers are ready to take for a product or service and the actual price they get from the market.

Deadweight Loss

An economic inefficiency that arises when the balance for a product or service is either not attained or cannot be attained.

Consumer Surplus

The differential between the overall amount consumers are willing and financially prepared to spend on a good or service, and what they end up spending.