Which of the following forecasting methods puts the least weight on the most recent time series value?
A) exponential smoothing with α = .3
B) exponential smoothing with α = .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 (α) value (in this case, α = .2) puts less weight on the most recent observations compared to higher alpha values or shorter moving average periods.

Which of the Following Forecasting Methods Puts the Least Weight