When using the exponential smoothing technique to smooth a series the value of the smoothing coefficient (W) should be between -1 and 1 True False
Question
When using the exponential smoothing technique to smooth a series the value of the smoothing coefficient (W) should be between -1 and 1
- True
- False
Solution
Answer
The statement is False.
The smoothing coefficient (α), which is often denoted by W in some contexts, in the exponential smoothing technique should be between 0 and 1, not -1 and 1.
- Range of W/α:
When α is between 0 and 1, it allows the model to balance between the past observations and the new observations, giving more weight to the most recent observations as compared to the older ones. If α were to be negative or greater than 1, it would not appropriately represent a smoothing factor in the context of time series forecasting.
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