An important aspect of exponential smoothing is its ability to emphasize recent data and systematically discount old information.

Question

Quizplus · Accepted Answer

Exponential smoothing is a forecasting technique that assigns weights to past observations, with the weights declining exponentially as observations get older. This means that recent data is given more weightage while older data is systematically discounted, making it an effective tool for accounting for short-term fluctuations and trends in data.

An Important Aspect of Exponential Smoothing Is Its Ability to Emphasize