Which of the following is NOT a characteristic of exponential smoothing?
A)smoothes random variations in the data
B)uses an easily altered weighting scheme
C)weights each historical value equally
D)has minimal data storage requirements
E)uses the previous period's forecast

Question

Quizplus · Accepted Answer

Exponential smoothing is a time series forecasting method that assigns increasing weights to more recent observations and decreasing weights to older observations. Therefore, it does not weight each historical value equally (option C). The other options are all characteristics of exponential smoothing: it smoothes random variations in the data; uses an easily altered weighting scheme; has minimal data storage requirements; and uses the previous period's forecast.

Which of the Following Is NOT a Characteristic of Exponential