Which of the following is true of the exponential smoothing coefficient?

A. It is a randomly generated value between -1 and +1.
B. It is small for a time series that has relatively little random variability.
C. It is chosen as the value that minimizes a selected measure of forecast accuracy such as the mean squared error.
D. It is computed in relation with the order value, k, for the moving averages.


Answer: C

Business

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