The smoothing constant for exponential smoothing must be?
A) Positive
B) Negative
C) Between 0 and 1
D) Greater than 1

Question

Quizplus · Accepted Answer

The smoothing constant for exponential smoothing must be between 0 and 1. This is because the value of the constant determines how much weight is given to the most recent observation compared to previous observations. A value of 0 would give all weight to previous observations, while a value of 1 would give all weight to the most recent observation. Therefore, the best choice is C.

The Smoothing Constant for Exponential Smoothing Must Be