One key decision affecting the use of exponential smoothing is the choice of the ___________.
A) Smoothing constant
B) Beta coefficient
C) Coefficient normal
D) High value customers
E) None of the above

Question

Quizplus · Accepted Answer

The smoothing constant determines the weight given to the most recent values in the forecast, thus affecting the responsiveness and stability of the forecast. Choosing the right value for the smoothing constant depends on the characteristics of the data and the desired level of smoothing. A small constant will give more weight to recent observations, resulting in a more sensitive forecast, while a large constant will give more weight to past observations, resulting in a smoother forecast.

One Key Decision Affecting the Use of Exponential Smoothing Is