Which of the Following Possible Values of Alpha Would Cause

question 69

Multiple Choice

Which of the following possible values of alpha would cause exponential smoothing to respond the most slowly to sudden changes in forecast errors?

• A) .01
• B) .50
• C).90
• D) 3.14

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Definitions:

Fair Value

The exchange value of an asset or the settlement cost of a liability in a well-arranged transaction with participants in the market on the measurement occasion.

Book Value

The net value of a company's assets minus its liabilities, often used as a measure of the company's worth.

Equipment

Tangible property used in the operation of a business that is not intended for sale, including machinery, tools, and vehicles.

Consolidated Balance

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one report.