BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a randomly generated value between-1 and +1.
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It is small for a time series that has relatively little random variability.
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It is chosen as the value that minimizes a selected measure of forecast accuracy such as the mean squared error.
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It is computed in relation with the order value, k, for the moving averages.
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Detailed explanation-1: -The correct answer is d. It is chosen as the value that minimizes a selected measure of forecast accuracy, such as the mean squared error .
Detailed explanation-2: -Terms in this set (29) What is true of the exponential smoothing coefficient? It is chosen as the value that minimizes a selected measure of forecast accuracy such as the mean squared area.
Detailed explanation-3: -Answer and Explanation: The correct answer is-Their values are determined independently. One of the smoothing constants is for the broader average of the data, while the other smoothing constant is for trend in which it moves.
Detailed explanation-4: -The higher a smoothing constant, the more sensitive your demand forecast. This means you will see large spikes of data. This is what a smoothing constant of 0.8 would look like with our data: The lower a smoothing constant, the less sensitive the forecast and thus the less spikes in demand the forecast will have.
Detailed explanation-5: -Answer and Explanation: A smoothing constant used in simple exponential smoothing close to 0 is analogous to a short span in moving average forecasts is false because as alpha approaches to zero the term approaches to 1 and in this case the weights decrease very slowly .