Weight to be placed on different terms of time-series data

Weight to be placed on different terms of time-series data

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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 alpha equals .30, what weight is applied to the observation four periods ago?

Reference no: EM13690369

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