For single exponential smoothing,
A)Large values of alpha ($\alpha$) place more emphasis on recent data
B)Small values of alpha ($\alpha$) place more emphasis on recent data
C)Very volatile time series with substantial random variability should use a large value for alpha ($\alpha$)
D)Very stable time series with little random variability should use small values for alpha ($\alpha$)

Question

Quizplus · Accepted Answer

Large values of alpha ($\alpha$) give more weight to recent observations, making the forecast more responsive to changes in the data.

For Single Exponential Smoothing, A)Large Values of Alpha α\alphaα ) Place More Emphasis on Recent Data B)Small Values of )

For Single Exponential Smoothing,
A)Large Values of Alpha $\alpha$ ) Place More Emphasis on Recent Data
B)Small Values of )