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.

---

Definitions:

Price Objection

A concern or hesitation expressed by a potential buyer regarding the cost of a product or service, often needing to be addressed during the sales process.

Hydro Seeder

A machine used for spraying a slurry of seeds, water, fertilizer, and mulch over a large area to promote rapid vegetation growth for landscaping and erosion control.

Stainless Steel

A corrosion-resistant alloy of iron, chromium, and often nickel, widely used in utensils, appliances, and industrial equipment.

Spray Arms

Components of dishwashers designed to spray water and detergent onto dishes to clean them effectively.