Course Solutions Uncategorized (Answered) : Exponential smoothing with α = .2 and a moving average with n = 5 put the same weight on the actual value for the current perio

(Answered) : Exponential smoothing with α = .2 and a moving average with n = 5 put the same weight on the actual value for the current perio

Exponential smoothing with α = .2 and a moving average with n = 5 put the same weight on the actual value for the current period True or Flase

Expert Answer


The answer is TRUE.

With Alpha = 0.2, this gets multiplied with the current actual and is the weight

For moving average n=5, the last 5 actuals are added up and divided by 5. which means the current actual also gets divided by 5.

As 1/5 = 0.2, this becomes the weight for the current actual.

In view of the above, we can say that its TRUE : Exponential smoothing with α

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