A company using exponential smoothing technique for forecasting their sales in 2012,is likely to award a 1.5 weight for sales data of 2012,2.0 weight for sales data from 2011,and 2.5 weight for the sales data from 2009.

Question

Quizplus · Accepted Answer

Exponential smoothing does not assign specific weights to past data, but rather assigns weights based on the smoothing parameter or alpha value. The weights given in the question are arbitrary and not indicative of how exponential smoothing works.

A Company Using Exponential Smoothing Technique for Forecasting Their Sales