Which of the following statements is false?
A)A moving average for a time period is the simple arithmetic average of the values in that time period and those close to it.
B)A value of the smoothing constant w close to 1 results in a very large smoothing,whereas a value of w close to zero results in very little smoothing.
C)The accuracy of the forecast with exponential smoothing decreases rapidly for predictions of the time series more than one period into the future.
D)A moving average "forgets" most of the previous time-series values and is considered a relatively crude method of removing the random variation.

Question

Quizplus · Accepted Answer

A value of the smoothing constant $w$ close to 1 results in very little smoothing, as it gives more weight to the most recent observation. Conversely, a value of $w$ close to zero results in a very large smoothing, as it gives more weight to the older observations.

Which of the Following Statements Is False