What effect does the value of the smoothing constant have on the weight given to the recent values?

QUESTION:

“What effect does the value of the smoothing constant have on the weight given to the recent values?”

ANSWER:

When the smoothing constant,

• α, is large (close to 1.0),

• More weight is given to recent data;

• When a is low (close to 0.0),

• More weight is given to past data.

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