In an exponential smoothing method, weights are assigned
A) just to the current actual and predicted values.
B) just to the previous data point and its predicted value.
C) to all past data points with weight α.
D) to all past data points with more recent data points receiving more weight.

Question

Quizplus · Accepted Answer

Exponential smoothing assigns weights to all past data points, with more recent data points receiving more weight. This is because recent data is generally considered more relevant and representative of future trends than older data. Using a constant α in the smoothing formula allows for this adjustment of weights, resulting in more accurate predictions.

In an Exponential Smoothing Method, Weights Are Assigned