The exponential smoothing forecast has the same value as the naïve forecast when $\alpha$ in the exponential smoothing model is equal to:
A)0
B)0.5
C)1
D)Insufficient information provided to determine answer

Question

Quizplus · Accepted Answer

When the smoothing constant α is equal to 1, the exponential smoothing forecast becomes equivalent to the naïve forecast, as it gives full weight to the most recent observation.

The Exponential Smoothing Forecast Has the Same Value as the Naïve