If a Time Series Contains Substantial Irregular Movement, the Smoothing

question 26

True/False

If a time series contains substantial irregular movement, the smoothing constant for a single exponential smoothing model that is close to 1.0 will result in forecasts that are not as smoothed out as those that would occur if a smaller smoothing constant was used.

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Definitions:

Self-Actualization

The achievement or actualization of personal talents and potential, often regarded as a universal motivation or necessity within every individual.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Physiological Need

Basic physical requirements necessary for human survival, such as food, water, and sleep, which must be met to ensure health and well-being.

Unpredictability

The quality of being unable to be foreseen or declared in advance.