In order to begin exponential smoothing,a forecaster needs ______.
A)seasonal indices
B)tracking signals
C)the value of α
D)leading indicators

Question

Quizplus · Accepted Answer

Exponential smoothing is a time-series forecasting method that uses a smoothing constant (α) to give more weight to recent observations while also considering past observations. Thus, the value of α is crucial for exponential smoothing, and a forecaster needs to determine the optimal value of α for the specific time series they are forecasting. Seasonal indices are useful for forecasting seasonal trends, tracking signals are used to monitor the forecast errors, and leading indicators are used to predict future changes in the time series. However, none of these are necessary to begin exponential smoothing.

In Order to Begin Exponential Smoothing,a Forecaster Needs ______