Which of the following forecasting methods puts the least weight on the most recent time series value?
A)exponential smoothing with α = 0.3
B)exponential smoothing with α = 0.2
C)moving average using the most recent four periods
D)moving average using the most recent three periods

Question

Quizplus · Accepted Answer

Exponential smoothing with a lower alpha (α) value places less weight on the most recent observations. An α of 0.2 places less weight than an α of 0.3. Moving averages distribute weight evenly across the selected periods, so they don't apply differential weighting like exponential smoothing does.

Which of the Following Forecasting Methods Puts the Least Weight