Asked by angela vidal on Jun 19, 2024
Verified
Which of the following statements is false?
A) A moving average for a time period is the simple arithmetic average of the values in that time period and those close to it.
B) A value of the smoothing constant w close to 1 results in a very large smoothing,whereas a value of w close to zero results in very little smoothing.
C) The accuracy of the forecast with exponential smoothing decreases rapidly for predictions of the time series more than one period into the future.
D) A moving average "forgets" most of the previous time-series values and is considered a relatively crude method of removing the random variation.
Smoothing Constant
A parameter used in exponential smoothing models to weight recent observations more heavily than older ones for forecasting purposes.
Exponential Smoothing
Exponential smoothing is a time series forecasting method for smoothing data values, giving more weight to recent observations while factoring in older data.
Moving Average
A statistical technique used to analyze time series data by creating a series of averages of different subsets of the full data set.
- Utilize suitable techniques for time series analysis, such as moving averages and exponential smoothing.
- Evaluate the influence of different smoothing constant selections on the performance of exponential smoothing.
Verified Answer
Learning Objectives
- Utilize suitable techniques for time series analysis, such as moving averages and exponential smoothing.
- Evaluate the influence of different smoothing constant selections on the performance of exponential smoothing.
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