Which of the Following Statement Is TRUE If the Time

question 82

Multiple Choice

Which of the following statement is TRUE if the time series exhibits a negative trend in an exponential smoothing technique?

• A) The forecast will lag the actual values.
• B) The forecast will overshoot the actual values.
• C) The mean square error will be zero.
• D) The alpha value will be one.

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Definitions:

Economic Rents

Earnings exceeding the minimum amount necessary to keep a factor of production in its current use, often associated with imperfect competition or unique resources.

Land Ownership

The legal right to possess, use, and manage a piece of land.

Compound Interest

The accumulation of money that builds over time in an investment or interest-bearing account as new interest is earned on previous interest that is not withdrawn.

Savings Account

A deposit in a commercial bank or thrift institution on which interest payments are received; generally used for saving rather than daily transactions; a component of the M2 money supply.