When is the exponential smoothing model equivalent to the naïve forecasting model?
A)α = 0
B)α = 0.5
C)α = 1
D)during the first period in which it is used
E)never

Question

Quizplus · Accepted Answer

The exponential smoothing model with α = 1 forecasts only the most recent observation, which is equivalent to the naïve forecasting model. In this case, the forecast for the next period is simply equal to the observed value for the most recent period.

When Is the Exponential Smoothing Model Equivalent to the Naïve