The graph shows Canadian wheat exports in dollars, from January 2006 to May 2009, in light blue, together with two exponential smoothings. One exponential smoothing has the
smoothing parameter α = 0.5, and the other has α = 0.2.

CANSIM

Table 228-0001—Merchandise imports and exports, by major groups and principal trading areas for all countries, monthly [dollars].)

a) Which exponential smoothing corresponds to the graph in orange?

b) Which exponential smoothing corresponds to the graph in dark blue?

c) Canadian wheat exports peaked in May 2008. Which exponential smoothing is affected for a longer period of time after this peak?

Transcribed Image Text:

1,000,000,000 900,000,000 800,000,000 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 2006-01 2008-09 Canadian Wheat Exports 2006-03 2006-05 2006-07 2006-09 2006-11 2007-01 2007-03 2007-05 2007-07 2007-09 2007-11 2008-01 2008-03 2008-05 2008-07 2008-11 2009-01 2009-03 2009-05