3. Smoothing parameter (alpha) close to 1 gives more weight or influence to recent observations over the forecast.
A. TRUE
B. FALSE
4. The last period’s forecast was 60 and demand was 50. What is the simple exponential smoothing forecast with alpha of 0.4 for the next period.
A) 63.8
B) 65
C) 62
D) 56
5. What should be criteria to detect an outlier in a time series data?
A. Absolute value of Tracking Signal is less than 0.5 indicates an outlier
B. Absolute value of Tracking Signal is greater than 0.5 indicates an outlier
C. Absolute value of z-score is greater than 2.5 indicates an outlier
D. Absolute value of z-score is less than 2.5 indicates an outlier