A parameter of the exponential smoothing model that provides the weight given to the most recent time series value in the calculation of the forecast value is known as the
A) mean squared error.
B) mean absolute error.
C) smoothing constant.
D) exponential estimate.

Question

Quizplus · Accepted Answer

The smoothing constant is the parameter in the exponential smoothing model that controls the weight given to the most recent value. It is also referred to as the smoothing factor or alpha. The mean squared error (MSE) and mean absolute error (MAE) are measures of forecast accuracy and not parameters of the model. The exponential estimate is not a commonly used term in relation to exponential smoothing.

A Parameter of the Exponential Smoothing Model That Provides the Weight