13. Which of thefollowing statements about the method of exponential smoothing i

Question

13. Which of thefollowing statements about the method of exponential smoothing isnot true?

A) It gives greater weight tomore recent data.
B) It can be used forforecasting.
C) It gives greater weight tothe earlier observations in the series.
D) It uses all earlierobservations in each smoothing calculation.

14. Which of thefollowing is NOT an advantage of exponential smoothing?

A) It enables us to smooth outseasonal components.
B) It enables us to performone-period ahead forecasting.
C) It enables us to perform morethan one-period ahead forecasting.
D) It enables us to smooth outcyclical components.

18. The cyclicalcomponent of a time series

A) represents periodicfluctuations which usually occur in 2 or more years.
B) is obtained by adjusting forcalendar variation.
C) is obtained by adding up theseasonal indexes.
D) represents periodicfluctuations which reoccur within 1 year.

19. Which of thefollowing terms describes the overall long-term tendency of a timeseries?

A) seasonal component
B) cyclical component
C) irregular component
D) trend

20. Which of thefollowing terms describes the up and down movements of a timeseries that vary both in length and intensity?

A) seasonal component
B) trend
C) irregular component
D) cyclical component

Explanation / Answer

13. C) It gives greater weight to the earlier observations in theseries. 14. C) It enables us to perform more than one-period aheadforecasting. 15. A) Represents periodic fluctuations which usually occur in 2 ormore years. 16. D) Trend. 17. C) Irregular component.

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