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Author Question: The choice of a larger smoothing constant in simple exponential smoothing would place more weight ... (Read 194 times)

yoooooman

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on: Jun 24, 2018
The choice of a larger smoothing constant  in simple exponential smoothing would place more weight on the most recent value.
 
  Indicate whether the statement is true or false

Question 2

Is it possible to provide a meaningful interpretation of the estimate b0?
 
  What will be an ideal response?


raenoj

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Reply #1 on: Jun 24, 2018
Answer to Question 1

TRUE

Answer to Question 2

The intercept term b0 of -0.03 is the estimated milk consumption in quarts per week given that the family's weekly income is 0 dollars and there are 0 members in the family. This is likely extrapolating beyond the observed data series and is not a useful interpretation.


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