Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?
A) 0
B) .01
C) .05
D) .10
E) .15

Question

Quizplus · Accepted Answer

A higher alpha value gives more weight to recent observations, making the forecast more responsive to changes and errors. Among the given options, 0.15 is the highest, thus it responds the quickest.

Which of the Following Possible Values of Alpha Would Cause