Which of the following forecasting methods puts the least weight on the most recent time series value?
A)exponential smoothing with $\alpha$ = .3
B)exponential smoothing with $\alpha$ = .2
C)moving average using the most recent 4 periods
D)moving average using the most recent 3 periods

Question

Quizplus · Accepted Answer

Exponential smoothing with a lower $\alpha$ value places less weight on the most recent observation compared to a higher $\alpha$ value.

Which of the Following Forecasting Methods Puts the Least Weight α\alphaα

Which of the Following Forecasting Methods Puts the Least Weight $\alpha$