TABLE 16-3
The following table contains the number of complaints received in a department store for the first 6 months of last year.
-If you want to recover the trend using exponential smoothing,you will choose a weight (W)that falls in the range
A)[0,0.2].
B)[0.2,0.4].
C)[0.6,0.8].
D)[0.9,1.0].

Question

TABLE 16-3
The following table contains the number of complaints received in a department store for the first 6 months of last year. 
-If you want to recover the trend using exponential smoothing,you will choose a weight (W)that falls in the range
A)[0,0.2]. 
B)[0.2,0.4]. 
C)[0.6,0.8]. 
D)[0.9,1.0].

Quizplus · Accepted Answer

Exponential smoothing is a technique used to forecast future values of a time series by taking a weighted average of past values. The weight (W) determines the importance of past values in the forecast. A weight of 0 means that only the most recent value is used in the forecast, while a weight of 1 means that all past values are given equal weight. For exponential smoothing to be effective, the weight should fall in the range [0, 0.2].

TABLE 16-3 the Following Table Contains the Number of Complaints Received in Received