When forecasting with exponential smoothing, data from previous periods is _________.
A)given equal importance
B)given exponentially increasing importance
C)ignored
D)given exponentially decreasing importance
E)linearly decreasing importance

Question

Quizplus · Accepted Answer

In exponential smoothing, more recent observations are given more importance, and the weight given to past observations decreases exponentially. This means older data has less influence on the forecast.

When Forecasting with Exponential Smoothing, Data from Previous Periods Is