Exponential Smoothing Models Never Forget Past Data as Long as the Smoothing

question 68

True/False

Exponential smoothing models never forget past data as long as the smoothing constant is strictly between 0 and 1. In contrast, moving average methods completely forget all data older than k periods in the past.

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Definitions:

Elastic

A description of a good's demand or supply that indicates a high sensitivity to changes in price, where a small change in price leads to a larger change in quantity demanded or supplied.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater or less than one indicating the degree of responsiveness.

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price, holding other factors constant.

Elasticity Coefficient

A measure that quantifies the responsiveness of the quantity demanded or supplied of a good to a change in one of its determinants, such as price.