Which of the following is true of the exponential smoothing coefficient?
A)It is a randomly generated value between -1 and +1.
B)It is small for a time series that has relatively little random variability.
C)It is chosen as the value that minimizes a selected measure of forecast accuracy such as the mean squared error.
D)It is computed in relation with the order value, k, for the moving averages.

Question

Quizplus · Accepted Answer

The exponential smoothing coefficient, often denoted as alpha (α), is chosen to minimize forecast errors, such as the mean squared error, to improve the accuracy of the forecast.

Which of the Following Is True of the Exponential Smoothing