Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?
A)0
B)1 divided by the number of periods
C)0.5
D)1.0

Question

Quizplus · Accepted Answer

A smoothing constant of 1.0 in exponential smoothing makes the forecast equivalent to a naive forecast, as it gives full weight to the most recent observation, ignoring all previous data.

Which of the Following Smoothing Constants Would Make an Exponential