If we use a value close to 1 for the smoothing constant in a simple exponential smoothing model,then we expect the model to respond very slowly to changes in the level.

Question

If we use a value close to 1 for the smoothing constant  in a simple exponential smoothing model,then we expect the model to respond very slowly to changes in the level.

Quizplus · Accepted Answer

If we use a value close to 1 for the smoothing constant, we expect the model to respond quickly to changes in the level. This is because the closer the value is to 1, the less weight is given to past observations and the more weight is given to recent observations. Therefore, the model becomes more responsive to changes in the data.

If We Use a Value Close to 1 for the Smoothing