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:

Foreign Particles

Unfamiliar substances or materials present in an organism or environment that can be inorganic or organic, potentially triggering an immune response.

Osmotic Pressure

The pressure required to prevent the flow of a solvent into a solution through a semipermeable membrane, driven by differences in solute concentration.

Selectively Permeable Membrane

A barrier that allows certain molecules or ions to pass through it by diffusion and occasionally specialized processes.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to a region of higher solute concentration to equalize the concentrations on both sides of the membrane.