When Using Simple Exponential Smoothing,the More Recent the Time Series

question 21

Multiple Choice

When using simple exponential smoothing,the more recent the time series observation,the _________ its corresponding weight.

• A)larger
• B)smaller
• C)irregular
• D)cyclical

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Definitions:

Leverage

Utilizing leveraged capital to boost the prospective returns of an investment, concurrently escalating the risk of financial loss.

Premium

The amount by which the price of a financial instrument or asset exceeds its face value or principal value, often related to bonds, insurance, or options trading.

Arbitrage

The simultaneous purchase and sale of the same asset in different markets to profit from unequal prices.

Profit

Profit represents the financial gain achieved when the revenues generated from business activities exceed the expenses, taxes, and costs incurred in operating the business.