The declaration of android.graphics.Bitmap.createScaledBitmap is
public static Bitmap createScaledBitmap
(Bitmap src, int dstWidth, int dstHei
To expand on Karan's answer: As a general rule you won't see any difference if you're scaling your image down, but you will if you're scaling it up.
Passing filter = false will result in a blocky, pixellated image.
Passing filter = true will give you smoother edges.
However, as EIYeante pointed out in the comments, you might still see a difference. This is their example image.