In Exponential Smoothing, Which of the Following Values for

question 118

Multiple Choice

In exponential smoothing, which of the following values for  would generate the most stable forecast?

• A) 0.10
• B) 0.25
• C) 0.50
• D) 0.75
• E) 1.00

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Definitions:

Contract Rate

The agreed-upon price or interest rate outlined in a contract for services or loans.

Installment Notes

A form of debt that requires the borrower to make scheduled periodic payments of principal and interest over a set period until the debt is paid off.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as an annual percentage of the principal.

Principal

The original sum of money borrowed in a loan, or the amount of the loan that has not yet been repaid, excluding interest.