This Blog is mainly on SAP Exam Questions and Selected "How-to" SAP processes

Monday, March 25, 2013

Question no 1862 : Forecasting parameters

In SAP MM or PP ECC6.0, “The older the time series values, the less important they become for the calculation of the forecast values”, this statement is most appropriately defined for ________________ . 

(only one answer)

(A)   Ex-post forecast
(B)   Model initialization
(C)   Parameters optimization
(D)   Exponential smoothing
(E)   Auto correction test

1 comment:

  1. The principles of first-order exponential smoothing are:
    . The older the time series values, the less important they are for the calculation of the forecast. More significance is then given to the closer time series values. By taking a smaller percentage of the older time series value and a higher percentage of the newer time series values; the exponential smoothing hopefully presents a good choice of future forecast values.
    . The present forecast error is taken into account in subsequent forecasts.

    ReplyDelete

Note: Only a member of this blog may post a comment.