Asked by albandari aljuaid on Jul 25, 2024
Verified
Distinguish between a moving average model and an exponential smoothing model.
Moving Average Model
A statistical method used to forecast future values based on previous observations' averages.
Exponential Smoothing
A time series forecasting method for univariate data that applies decreasing weights to older observations, making more recent data more influential.
- Understand the concept and calculations involved in moving average and exponential smoothing models.
Verified Answer
MA
Muhammad ArshanJul 28, 2024
Final Answer :
Exponential smoothing is a weighted moving average model wherein previous values are weighted in a specific manner-in particular, all previous values are weighted with a set of weights that decline exponentially.
Learning Objectives
- Understand the concept and calculations involved in moving average and exponential smoothing models.
Related questions
What Is the Key Difference Between Weighted Moving Average and ...
In Exponentially Smoothed Time Series,the Smoothing Constant W Is Chosen ...
The Equation: S t = W⋅y t + (1 −W)⋅St− 1 (For ...
Smoothing Time Series Data by the Moving Average Method or ...
Each Forecast Using the Method of Exponential Smoothing Depends on ...