The Method of Least Squares Maximizes the Sum of the Squared

question 54

True/False

The method of least squares maximizes the sum of the squared deviations between the actual time-series values and the estimated values of the dependent variable.

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Definitions:

Exponential Smoothing Constant

A parameter in exponential smoothing methods for forecasting that controls the degree to which recent observations are weighted more heavily than older observations.

Exponential Smoothing Model

A time series forecasting method that applies weighted averages of past observations, giving greater weight to more recent data, to predict future values.

Mean Absolute Percentage Error

A measure used to evaluate the accuracy of forecasting models, expressing the average absolute percent error between predicted and observed values.

Sales Details

Specific pieces of information related to the transactions of sales, including quantities sold, prices, dates, and customer data.