An alpha ($\alpha$) value of .2 will cause an exponential smoothing forecast to react more quickly to a sudden drop in demand than will an $\alpha$equal to .4.

Question

Quizplus · Accepted Answer

An alpha ($\alpha$) value of .4 will cause the forecast to react more quickly to changes in demand than an alpha of .2, as higher alpha values give more weight to recent observations.

An Alpha α\alphaα ) Value of α\alphaα Equal to 4

An Alpha $\alpha$ ) Value of $\alpha$ Equal to 4