Which Statement Is Correct Regarding Forecasting Using an Exponential Smoothing

question 64

Multiple Choice

Which statement is correct regarding forecasting using an exponential smoothing model?

• A)A model with low α is more responsive to new data than a model with high α.
• B)Increasing α will typically increase the forecast accuracy.
• C)As α increases, more weight is put on recent data.
• D)When data have an upward trend, the forecasts will have an upward bias.

---

Definitions:

Projection

A psychological mechanism wherein individuals attribute their own undesired thoughts, feelings, or motives to another person or group.

Projection

In psychology, a defense mechanism in which an individual ascribes their own unacceptable thoughts, feelings, or motives to another person. In business, it often refers to the estimation or forecasting of future trends based on current data.

Impression Management

Strategies individuals or organizations use to influence the perceptions of others, often to appear more favorable or competent.

Personal Attributes

Characteristics or qualities that define an individual's personality and behavior.