An Exponential Smoothing Technique in Which the Smoothing Constant Alpha

question 40

True/False

An exponential smoothing technique in which the smoothing constant alpha is equal to one is equivalent to a naïve forecasting model.

---

Definitions:

Ordinarily Prudent Person

A legal standard that represents how a typical, reasonable person would act in certain circumstances, usually used to determine negligence.

Pac-Man

A classic arcade video game first released in 1980 featuring a character navigating a maze while eating dots and avoiding ghosts.

Tender Offer

A public offer by a bidder to purchase a subject company’s shares directly from its shareholders at a specified price for a fixed period of time.

Greenmail

A situation where a company buys back its own shares at a premium from a potential acquirer to prevent a takeover.