Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?
A) 0
B) 0.01
C) 0.1
D) 0.5
E) 1

Name: Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? A) 0 B) 0.01 C) 0.1 D) 0.5 E) 1
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?
A) 0
B) 0.01
C) 0.1
D) 0.5
E) 1

Quizplus · Accepted Answer

A smoothing constant of 1 in exponential smoothing makes the forecast equivalent to a naive forecast, as it gives full weight to the most recent observation, ignoring all previous data.

Which of the Following Smoothing Constants Would Make an Exponential