Exponential smoothing is a type of moving average that,instead of weighting all observations equally in generating the forecast,weights the most recent observations __________.
A)Lightest
B)Multiplied by the frequency factor
C)Heaviest
D)Divided by the frequency factor
E)None of these

Question

Quizplus · Accepted Answer

Exponential smoothing is a type of moving average that, instead of weighting all observations equally in generating the forecast, weights the most recent observations heaviest. The reasoning behind this strategy is that the most recent observations contain the most information about what is likely to happen in the future, and they should therefore be given more weight.

Exponential Smoothing Is a Type of Moving Average That,instead of Weighting