In simple exponential smoothing, what value of alpha would make the forecast equal to the naive forecast?
A) Alpha = 1
B) Alpha = 0.5
C) Alpha = 0
D) Alpha = 2
E) None of the above

Question

Quizplus · Accepted Answer

When alpha is set to 1 in simple exponential smoothing, the forecast is equal to the naive forecast because the most recent observation is given full weight, and no weight is given to past observations.

In Simple Exponential Smoothing, What Value of Alpha Would Make