To Initialize the Forecasts in an Exponential Smoothing Process, It

question 5

Multiple Choice

To initialize the forecasts in an exponential smoothing process, it is acceptable to:

• A)use the average of the first six observed data values.
• B)use the most recent data value in the observed data.
• C)apply the smoothing constant α to the mean of the data.
• D)ask a panel of experts to make a guess at the initial forecast.

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Definitions:

Mental Processing

The operations performed by the brain in order to perceive, interpret, and react to information, including thinking, memory, and problem-solving.

Variable Ratio Schedule

A reinforcement strategy in operant conditioning where a response is rewarded after an unpredictable number of responses, making it highly effective for maintaining consistent behavior.

Uncertainty

A state or condition where the outcome of an event or situation is unknown or lacks predictability.

Consequence

The result or effect of an action or decision, which can be positive, negative, or neutral, affecting future events and decisions.