Suppose That You Are Using the Exponential Smoothing Forecasting Method

question 87

Multiple Choice

Suppose that you are using the exponential smoothing forecasting method, and this period's forecast (F_t) was 100% accurate (i.e., no error) . If α = .5, which of the following is definitely true?

• A) Next period's forecast will also be 100% accurate.
• B) Next period's forecast equals this period's actual.
• C) This period's forecast must be thrown out, and next period's forecast equals F_t-1 + α (A_t-1 α − F_t-1).
• D) Next period's forecast equals 50% of this period's forecast.
• E) Next period's forecast equals 50% more than this period's forecast.

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Definitions:

Axons

Long, slender projections of neurons that transmit electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors via intermediate bipolar cells and transmit it to the brain through the optic nerve.

Optic Nerve

The nerve that transmits visual information from the retina to the brain.

Retina

The light-sensitive layer at the back of the eye that converts light into neural signals for visual recognition.