If you were calculating a forecast using an exponential smoothing model, a calculation using$\alpha$ = 0.2 would be putting a greater emphasis on recent data, while a calculation using $\alpha$ = 0.8 would be putting a greater emphasis on past data.Thus a lower $\alpha$ is more responsive to changes in demand in the most recent periods.

Question

Quizplus · Accepted Answer

A higher alpha (e.g., 0.8) puts more emphasis on recent data, making the forecast more responsive to recent changes, while a lower alpha (e.g., 0.2) gives more weight to past data, making it less responsive to recent changes.

If You Were Calculating a Forecast Using an Exponential Smoothing α\alphaα

If You Were Calculating a Forecast Using an Exponential Smoothing $\alpha$