A parameter of the exponential smoothing model which provides the weight given to the most recent time series value in the calculation of the forecast value is known as the
A)mean square error
B)mean absolute deviation
C)smoothing constant
D)None of these alternatives is correct.

Question

Quizplus · Accepted Answer

The parameter in question is the smoothing constant, which determines how much weight is given to the most recent observation in the forecast calculation. The mean square error and mean absolute deviation are measure of forecast accuracy, and are not directly related to the smoothing constant. Therefore, the correct answer is C.

A Parameter of the Exponential Smoothing Model Which Provides the Weight