When using exponential smoothing, a smoothing constant must be used. The value for :
A) ranges between 0 and 1
B) ranges between -1 and +1
C) equals the largest observed value in the series
D) represents the strength of the association between the forecasted and observed values

Question

When using exponential smoothing, a smoothing constant  must be used. The value for  :
A) ranges between 0 and 1 
B) ranges between -1 and +1 
C) equals the largest observed value in the series 
D) represents the strength of the association between the forecasted and observed values

Quizplus · Accepted Answer

The smoothing constant used in exponential smoothing ranges between 0 and 1. It represents the weight given to the most recent observation in the forecast calculation. A value of 0 means that only the initial level is used in the forecast, while a value of 1 means that only the most recent observation is used.

When Using Exponential Smoothing, a Smoothing Constant Must Be