Asked by Kortney Whitted on Jun 19, 2024
Verified
Smoothing time series data by the moving average method or exponential smoothing method is an attempt to remove the effect of the random variation component.
Random Variation Component
Represents the unpredictable fluctuations that are inherent in a set of data, often modeled as random error in statistical analyses.
- Comprehend the fundamental principles of exponential smoothing and its usage in prediction.
- Understand the significance of eliminating noise to uncover underlying patterns in time series data.
Verified Answer
AG
Abram GonzalezJun 25, 2024
Final Answer :
True
Explanation :
Smoothing methods aim to remove the effect of random variation or noise in time series data. Both moving average and exponential smoothing methods can be used for this purpose.
Learning Objectives
- Comprehend the fundamental principles of exponential smoothing and its usage in prediction.
- Understand the significance of eliminating noise to uncover underlying patterns in time series data.
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