Exhibit 18

question 1

Multiple Choice

Exhibit 18.2.The following table includes the information about a monthly time series. Refer to Exhibit 18.2.When the exponential smoothing method with α = 0.1 and α = 0.5 is applied,what is the speed of decline for which the mean absolute deviation (MAD) is better? What is this mean?

• A)α = 0.1 and MAD = 3.05
• B)α = 0.1 and MAD = 3.00
• C)α = 0.5 and MAD = 3.00
• D)α = 0.5 and MAD = 3.05

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