If the Random Variability in a Time Series Is Great,a

question 32

True/False

If the random variability in a time series is great,a small value of the smoothing constant is preferred so that we do not overreact and adjust our forecasts too quickly.​

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Definitions:

Deposits

Sums of money placed into financial institutions for safekeeping, which can earn interest over time depending on the type of account.

Minimum Tick Size

The smallest allowable increment by which the price of a financial instrument can move on the trading platform.

Treasury Bond Market

The marketplace where U.S. government bonds with maturities greater than ten years are issued and traded.

Spread

The difference between the purchase price and the sale price of a security, or the difference between the bid and ask prices.