Q1) Smoothing techniques are utilized to remove rapid fluctuation in time series so general trend can be seen.

True

False

Q2) The exponential smoothing constant can be any number between 0 and 100

True

False

Q3) Smaller choices of the exponential smoothing constant w assign more weight to the current value of the series and yield a smoother series.

True

False

Q4) Table lists number (in millions) of Chevrolet passenger cars sold to dealers in U.S. and Canada from 1980 to 1985.

Using smoothing constant of w = .80, compute the value of exponentially smoothed series in 1983.

a) 1.228

b) 1.235

c) 1.340

d) 1.289

Q5) The ______ of time series can account for fluctuations which occur during a specified period of the year

a) Seasonal effect

b) Residual effect

c) Cyclical fluctuation

d) Secular trend