In picking the smoothing constant for an exponential smoothing model,we should look for a value that
A)produces a nice-looking curve.
B)equals the utility level that matches with our degree of risk aversion.
C)produces values which compare well with actual values based on a standard measure of error.
D)causes the least computational effort.
E)None of the above

Question

Quizplus · Accepted Answer

The best choice for the smoothing constant in an exponential smoothing model is one that produces values which compare well with actual values based on a standard measure of error. This ensures that the model is accurately predicting values and provides a better basis for decision-making. The other options are not as important in determining the quality of the model.

In Picking the Smoothing Constant for an Exponential Smoothing Model,we