In the exponential smoothing formula for updating the level of the series,A_t = αy_t + (1 - α)A_t- 1,what does α represent? A) The weighted average of the exponentially declining weights. B) The speed of decline in the weights of older observations. C) The initial value of the time series. D) The last value of the time series.

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α represents the smoothing constant, which determines the speed at which the weights of older observations decline.

In the Exponential Smoothing Formula for Updating the Level of the Series,At

In the Exponential Smoothing Formula for Updating the Level of the Series,A_t