Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors?
A) 0.10
B) 0.20
C) 0.40
D) 0.80
E) cannot be determined

Question

Quizplus · Accepted Answer

A lower alpha value in exponential smoothing means the model gives more weight to older observations, thus responding more slowly to recent changes or forecast errors. Among the given options, 0.10 is the lowest.

Which of the Following Values of Alpha Would Cause Exponential