Exponential smoothing uses a feedback control mechanism because:
A) $\alpha $ is less than 1.
B) calculations are based on modifying the previous smooth value.
C) the calculation contains the forecast error.
D) the weights given to past data are exponentially distributed.

Question

Exponential smoothing uses a feedback control mechanism because:
A) $\alpha  $ is less than 1.
B) calculations are based on modifying the previous smooth value.
C) the calculation contains the forecast error.
D) the weights given to past data are exponentially distributed.

Quizplus · Accepted Answer

Exponential smoothing uses a feedback control mechanism because it incorporates the forecast error in its calculation. The forecast error is the difference between the predicted value and the actual value, and it is used to adjust the smoothing constant and improve the accuracy of future forecasts. The other options (A, B, and D) are characteristics of exponential smoothing, but they do not explain why it uses a feedback control mechanism.

Exponential Smoothing Uses a Feedback Control Mechanism Because: A) α\alpha α

Exponential Smoothing Uses a Feedback Control Mechanism Because:
A) $\alpha$