Random variations in a Time Series component are due to:
A) Population growth
B) Unpredictable events
C) Using a large value for the exponential smoothing constant
D) Inaccurate responses of the expert participants

Question

Quizplus · Accepted Answer

Random variations in a time series component are caused by unpredictable events, such as natural disasters or sudden changes in consumer behavior, rather than population growth or inaccurate responses from experts. Using a large value for the exponential smoothing constant may result in less smoothing and more sensitivity to short-term changes, but it does not cause random variations.

Random Variations in a Time Series Component Are Due To