Consider the following forecasting model: x^t,t+1=axt+(1-a)x^t-1,t If a decreases from 0.5 to 0.2, then in the forecast for period , which of the following statements is true? Select all correct answers
Consider the following forecasting model: x^t,t+1=axt+(1-a)x^t-1,t If a decreases from 0.5 to 0.2, then in the forecast for period , which of the following statements is true? Select all correct answers
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...
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please answer within 30 minutes.
![Consider the following forecasting model:
x^t,t+1=axt+(1-a)x^t-1,t
If a decreases from 0.5 to 0.2, then in the forecast
for period , which of the following statements is
true? Select all correct answers
It will give more weight to the most recent
observation.
It will give more weight to potential trends in
demand.
It will decrease the forecast error.
It will give more weight to the most recent forecast.
The forecasted value will be smaller.
None of the above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c04563b-f8ed-4559-9996-1120b05eaf83%2Fb9fb2fdc-261d-47fc-8c69-b5c3c68c6c84%2F1uhxvac_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following forecasting model:
x^t,t+1=axt+(1-a)x^t-1,t
If a decreases from 0.5 to 0.2, then in the forecast
for period , which of the following statements is
true? Select all correct answers
It will give more weight to the most recent
observation.
It will give more weight to potential trends in
demand.
It will decrease the forecast error.
It will give more weight to the most recent forecast.
The forecasted value will be smaller.
None of the above.
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