Exponential smoothing is a time series averaging method that weights the most recent data
A)the same as past data
B)less than past data
C)more strongly than past data
D)the same as the weighted moving average method

Question

Quizplus · Accepted Answer

Exponential smoothing gives more weight to the most recent data points, and less weight to past data points. This is done by assigning exponentially decreasing weights to past observations. Therefore, choice C, which says that the most recent data is weighted more strongly than past data, is the correct answer. Choices A, B, and D are incorrect because exponential smoothing does not weight the most recent data the same as past data, less than past data, or the same as the weighted moving average method.

Exponential Smoothing Is a Time Series Averaging Method That Weights