The exponential smoothing forecasting technique tends to work well when?
A) Demand rapidly increases then decreases
B) Demand is stable over time
C) Demand is highly variable
D) Demand rapidly decreases then increases

Question

Quizplus · Accepted Answer

Exponential smoothing works best when demand is stable over time, as it is designed to capture any pattern or trend in the data and make predictions based on that. It may not perform as well when there are sudden changes or fluctuations in demand.

The Exponential Smoothing Forecasting Technique Tends to Work Well When