In exponentially smoothed time series,the smoothing constant w is chosen on the basis of how much smoothing is required.In general,which of the following statements is true?
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,which 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 smoothing because it gives more weight to past observations, making the series less responsive to recent changes. Conversely, a large value of w (e.g., 0.8) results in less smoothing because it makes the series more responsive to recent changes by giving more weight to the most recent observation.

In Exponentially Smoothed Time Series,the Smoothing Constant W Is Chosen