Question: If the exponential smoothing method is applied on a time series with a horizontal pattern, then its forecast time series a. becomes smoother when the

If the exponential smoothing method is applied on a time series with a horizontal pattern, then its forecast time series

a. becomes smoother when the smoothing constant α increases.

b. becomes smoother when the smoothing constant α decreases.

c. is given by a straight line.

d. does not depend on the smoothing constant α.

Step by Step Solution

3.39 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Answer Explanation Exponential smoothing is a time series forec... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!