Which of the following is not an advantage of the simple exponential smoothing model over the N-period moving average model?
A) Old data are never dropped.
B) Older data are given progressively less weight.
C) Calculation is simple.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

The simple exponential smoothing model does indeed drop old data implicitly by giving them progressively less weight, making choices A and B incorrect as disadvantages. Additionally, it is known for its simplicity in calculation, making C incorrect as a disadvantage. Therefore, none of the provided options are disadvantages of the simple exponential smoothing model over the N-period moving average model.

Which of the Following Is Not an Advantage of the Simple