Which of the following values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?
A) 0.10
B) 0.20
C) 0.40
D) 0.80
E) cannot be determined

Question

Quizplus · Accepted Answer

In exponential smoothing, a higher alpha value (closer to 1) causes the forecast to respond more quickly to recent changes or errors, making 0.80 the fastest responding option listed.

Which of the Following Values of Alpha Would Cause Exponential