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1. In exponential smoothing, if the smoothing constant, alpha, is 1, you will get the same forecast as obtainable using the last period technique.
True or False?
2. As the smoothing constant, alpha, is reduced:
a. the forecasts are more sensitive to trend influences.
b. the computational complexity of forecasting increases.
c. cyclical/seasonal factors are more easily discernible.
d. the weights given to prior periods' data become more uniform.
3. Phil Johnston rides his bicycle to deliver newspapers to his neighborhood. Some customers take weekend trips and put their news delivery on hold. This is an example of:
a. cyclical variation
b. seasonal variation
c. long term trend
d. random effects
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