Using simple exponential smoothing, if we want the forecast to be very responsive to recent demand, the value of alpha should be:
A) High
B) Low
C) Moderate
D) Zero
E) The value of alpha doesn't matter

Question

Quizplus · Accepted Answer

A high value of alpha in simple exponential smoothing makes the forecast more responsive to recent changes in demand, as it gives more weight to the most recent observations.

Using Simple Exponential Smoothing, If We Want the Forecast to Be