Asked by Jayleen Ailani on May 09, 2024
Verified
The equation: St = w⋅yt + (1 −w)⋅St− 1 (for t≥ 2)refers to exponentially smoothed time series.
Exponentially Smoothed
A data smoothing technique that gives recent observations more weight than older observations, often used in time series analysis.
Smoothing Constant
A parameter used in exponential smoothing methods that determines the level of smoothing applied to the data.
- Develop an understanding of the basic elements of exponential smoothing and how it is utilized in making forecasts.
- Understand the importance of choosing suitable smoothing constants for exponential smoothing methods.
Verified Answer
AI
Aminul IslamMay 15, 2024
Final Answer :
True
Explanation :
The equation is indeed the formula for exponentially smoothed time series, where St is the smoothed value at time t, w is the smoothing constant, yt is the actual value at time t, and St− 1 is the smoothed value at time t-1.
Learning Objectives
- Develop an understanding of the basic elements of exponential smoothing and how it is utilized in making forecasts.
- Understand the importance of choosing suitable smoothing constants for exponential smoothing methods.
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