Which Is NOT True Regarding Simple Exponential Smoothing

question 42

Multiple Choice

Which is NOT true regarding simple exponential smoothing?

• A) It forecasts the value of the time series in the next period
• B) It has a smoothing constant ranging between 0 and 1.
• C) It uses a weighted average of past time-series values.
• D) It includes trend or seasonal effects.

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Definitions:

Equity Accounts

Accounts that represent the owner's interest in the company, including capital stock, retained earnings, and sometimes dividends.

Accounting Process

The systematic approach to recording, classifying, summarizing, and reporting a business's financial transactions.

Journal Entry

A record in accounting that notes the details of a financial transaction, showing which accounts are affected and by what amounts.

Ledger

A book or database in which financial transactions are recorded systematically.