The smoothing constant for exponential smoothing must be?
A) Negative
B) Positive
C) Between 0 and 1
D) Greater than 1

Question

Quizplus · Accepted Answer

The smoothing constant for exponential smoothing must be between 0 and 1 to ensure that the weights of previous observations decrease exponentially and that the forecast is based on a weighted average of past observations. A value less than 0 or greater than 1 would lead to unstable forecasts.

The Smoothing Constant for Exponential Smoothing Must Be