As the exponential smoothing constant increases, the resulting forecast tends to?
A) Become less responsive to changes in the previous period's demand
B) Become more responsive to changes in the previous period's demand
C) Become neither more nor less responsive to changes in the previous period's demand
D) It is impossible to determine how the forecast will change due to changes in the smoothing constant

Question

Quizplus · Accepted Answer

As the exponential smoothing constant increases, the resulting forecast will place more weight on the most recent period's demand and become more responsive to changes in the previous period's demand.

As the Exponential Smoothing Constant Increases, the Resulting Forecast Tends