The initial period's forecast for the exponential smoothing technique can be estimated by?
A) Randomly selecting a forecast value
B) Selecting a forecast value of zero
C) Selecting a forecast value using linear regression
D) Setting the first period's forecast equal to the first period's demand

Question

Quizplus · Accepted Answer

The initial forecast value for exponential smoothing is set equal to the demand in the first period. This is because there is no historical data to base a forecast on for the first period, so the actual demand is used as the starting point.

The Initial Period's Forecast for the Exponential Smoothing Technique Can