Which of the Following Smoothing Constants Would Make an Exponential

question 71

Multiple Choice

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

• A) 0
• B) 1 divided by the number of periods
• C) 0.5
• D) 1.0
• E) cannot be determined

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Fair Value

An estimate of the market value of an asset or liability, based on current prices in an orderly transaction between market participants.

Book Value

Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Loss on Disposal

An expense recorded when an asset is sold for less than its carrying amount on the balance sheet.

Cash Proceeds

The actual amount of money received from transactions such as sales, financing, or the sale of assets.