Which of the following values of alpha would cause exponential smoothing to respond the QUICKEST to changes in demand data?
A) 0.10
B) 0.2246
C) 0.50
D) 0.90
E) cannot be determined

Question

Quizplus · Accepted Answer

In exponential smoothing, a higher alpha value (closer to 1) causes the formula to give more weight to the most recent data, thus responding quicker to changes. Therefore, 0.90 would cause the quickest response.

Which of the Following Values of Alpha Would Cause Exponential