Which of the Following Is True When Lambda Equals 0

question 7

Multiple Choice

Which of the following is true when lambda equals 0.95?

• A) The weight given to the most recent observation is 0.95
• B) The weight given to the observation one day ago is 95% of the weight given to the observation two days ago
• C) The weights given to observations add up to 0.95
• D) The weights given to the observation two days ago is 95% of the weight given to the observation one day ago

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