Exponential Smoothing Flashcards
1
Q
True or False?
In exponential smoothing, the best alpha should be chosen on the basis of the minimal sum of error squared (SSE).
A
True
The lower the value of the SSE, the more accurate the exponential smoothing; i.e. How good the mathc is between the method and the data.
2
Q
A
3
Q
What is being referred to when we say we would like to use MA(3) as a smoothing technique?
A
Using MA(3) as a smoothing technique, refers to using the average of 3 consecutive time series’ data points to determine the forecast value.
In this instance, the forecast would start at the third observed point in time.
