The smoothing factor chosen in simple exponential smoothing determines the weight to be placed on different terms

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The smoothing factor chosen in simple exponential smoothing determines the weight to be placed on different terms of time-series data. If the smoothing factor is high rather than low, is more or less weight placed on recent observations? If α is .3, what weight is applied to the observation four periods ago?
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Business Forecasting With Forecast X

ISBN: 647

6th Edition

Authors: Holton Wilson, Barry Keating, John Solutions Inc

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