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Textbook Solution
Mathematics
Statistics
If yt are the observations and zt is the EWMA
If yt are the observations and zt is the EWMA
If yt are the observations and zt is the EWMA, show that the following relationships are true.
yt: Observation and zt: EWMA
(a)zt − zt−1 = λ(yt − zt−1)
(b) et − (1 − λ)et−1 = yt − yt−1
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