In exponential smoothing,an $\alpha$ of 0 3 will cause a forecast to react more quickly to a large error than will an $\alpha$ of 0 2

Question

In exponential smoothing,an $\alpha$  of 0 3 will cause a forecast to react more quickly to a large error than will an $\alpha$ of 0 2

Quizplus · Accepted Answer

This is true. The alpha value determines how much weight is given to the most recent observation in the forecast. A higher alpha means the forecast will react more quickly to changes in the data, including large errors. Therefore, an alpha value of 0.3 will cause the forecast to react more quickly than an alpha value of 0.2.

In Exponential Smoothing,an α\alphaα Of 0 3 Will Cause a Forecast to React More

In Exponential Smoothing,an $\alpha$ Of 0 3 Will Cause a Forecast to React More