Question

In exponential smoothing, the equation involves what type of value that is not part of the moving averages equation?

a. Upper limit
b. Lower limit
c. Level smoothing constant
d. Recent observed value

Answer 1

d. Recent observed value

Explanation:

Exponential smoothing is technique for smoothing time series data. In exponential smoothing more recent observed values give larger weights while the weights will decline if observed values are more distant. In moving average the observations were weighted equally.