BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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quantization
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nonlinear optimization
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clustering
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curve fitting
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Detailed explanation-1: -Typical values of smoothing constant are ranged from 0 to 1 but a satisfactory value can be generally determined by trial and-error modeling which value minimizes forecast error [9, 10]. Sanjoy [11] used trial and error approach for identifying the optimal value of smoothing constant.
Detailed explanation-2: -Trial and error method is used to determine the optimal value of the smoothing constant based on the two criterias (MSE and MAD). Based on the analysis carried out, there was no regularity of the relationship between the amount of data and the smoothing constant value that minimized MAD and MSE.
Detailed explanation-3: -In order to achieve a similar result, a smoothing constant closer to 1 will place heavier weight on the more recent values.
Detailed explanation-4: -What factors enter into the choice of a value for the smoothing constant in exponential smoothing? The choice of alpha in exponential smoothing depends on how responsive a forecast the manager desires.