In an exponentially smoothed time series, the smoothing constant w is chosen on the basis of how much smoothing is required. In general:
A)a small value of w, such as w = 0.1, results in very little smoothing, while a large value, such as w = 0.8, results in too much smoothing.
B)a small value of w, such as w = 0.1, results in too much smoothing, while a large value such as w = 0.8, results in very little smoothing.
C)a small value of w, such as w = 0.1, and a large value, such as w = 0.8, may both result in very little smoothing.
D)a small value of w, such as w = 0.1, and a large value, such as w = 0.8, may both result in too much smoothing.

Question

Quizplus · Accepted Answer

A small value of w (e.g., 0.1) results in more of the past data being considered, leading to more smoothing. A large value of w (e.g., 0.8) gives more weight to the most recent observation, resulting in less smoothing.

In an Exponentially Smoothed Time Series, the Smoothing Constant W