When the Smoothing Constant α = 1, the Exponential Smoothing

question 80

True/False

When the smoothing constant α = 1, the exponential smoothing model is equivalent to the naïve forecasting model.

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Definitions:

Normal Distribution

It is a probability distribution that features a symmetric alignment around the mean, emphasizing that data around the mean occur more than data at a distance.

Degrees of Freedom

The count of separate values or amounts that are capable of changing in an analysis while still respecting all limitations.

T-test

A statistical method employed to ascertain whether there's a notable disparity between the averages of two sets.

Interval Data

A type of numerical data that has meaningful intervals between values but no true zero, allowing for the measurement of differences.