If the random variability in a time series is great, a high $\alpha$0 value should be used to exponentially smooth out the fluctuations.

Name: If the random variability in a time series is great, a high $\alpha$0 value should be used to exponentially smooth out the fluctuations.
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Question

Quizplus · Accepted Answer

A high $\alpha$ value in exponential smoothing gives more weight to recent observations, which can amplify the effect of random variability rather than smoothing it out.

If the Random Variability in a Time Series Is Great α\alphaα

If the Random Variability in a Time Series Is Great $\alpha$