The value of the parameter α in the exponential smoothing method lies between _____.
A)
B)-1 and 1
C) 0 and 1
D) 0 and

Question

​The value of the parameter α in the exponential smoothing method lies between _____.
A)​ 
B)​-1 and 1 
C) ​0 and 1 
D) ​0 and

Quizplus · Accepted Answer

The value of α in exponential smoothing method ranges between 0 and 1 as it represents the weight given to the previous observation. A value of 1 would mean the previous observation is given full weight, making the model a simple mean model. On the other hand, a value of 0 would mean that no weight is given to the previous observation, making the model a simple naive model. Therefore, the best choice is C. u200bThe value of the parameter α in the exponential smoothing method lies between 0 and 1.

​The Value of the Parameter α in the Exponential Smoothing

The Value of the Parameter α in the Exponential Smoothing