Consider the following single exponential smoothing model: S_t = $\alpha$X_t + (1-$\alpha$) S_t_-1 You are given the following data: =0)1, X_t=0.5,S_t-₁=0.2 If we believe that the true DGP can be approximated by the exponential smoothing model, what would be an appropriate 2-step ahead forecast for X? (i.e. a forecast of X_t+₂ made at time t) A) 0.2 B) 0.23 C) 0.5 D) There is insufficient information given in the question to form more than a one step ahead forecast.

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The Answer of Consider the following single exponential smoothing model: S_t = $\alpha$X_t + (1-$\alpha$) S_t_-1 You are given the following data: =0)1, X_t=0.5,S_t-₁=0.2 If we believe that the true DGP can be approximated by the exponential smoothing model, what would be an appropriate 2-step ahead forecast for X? (i.e. a forecast of X_t+₂ made at time t) A) 0.2 B) 0.23 C) 0.5 D) There is insufficient information given in the question to form more than a one step ahead forecast.

Consider the Following Single Exponential Smoothing Model: St = α\alphaα Xt + (1-

Consider the Following Single Exponential Smoothing Model: S_t = $\alpha$ X_t + (1-