Asked by Jayleen Ailani on May 04, 2024

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In exponentially smoothed time series,the smoothing constant w is chosen on the basis of how much smoothing is required.In general,a small value of w such as 0.1 results in very little smoothing,while a large value of w such as 0.8 results in too much smoothing.

Smoothing Constant

A parameter used in exponential smoothing models that determines the weight given to the most recent observation in forecasting.

Exponentially Smoothed

A technique used in time series analysis that applies decreasing weights to older observations, with more recent data having more influence on the forecast.

  • Understand the basics of exponential smoothing and its application in forecasting.
  • Comprehend the significance of selecting appropriate smoothing parameters in exponential smoothing.
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Farrah BonnotMay 08, 2024
Final Answer :
False
Explanation :
In exponentially smoothed time series, a small value of w (e.g., 0.1) results in more smoothing because it gives more weight to past observations, while a large value of w (e.g., 0.8) results in less smoothing because it gives more weight to the most recent observation.