Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?
A) 0
B) .01
C) .1
D) .5
E) 1.0

Name: Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? A) 0 B) .01 C) .1 D) .5 E) 1.0
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Question

Quizplus · Accepted Answer

An exponential smoothing forecast becomes equivalent to a naive forecast when the smoothing constant is 1.0, as it gives full weight to the most recent observation, ignoring all previous data.

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