If a researcher is using exponential smoothing and determines that the forecast for the next period (F_{t + 1})is the weighted average of the actual value for the previous period (X_t)and the forecast value for the previous period (F_t), with weights of p and q respectively, then α = ______. A)p/q B)q/p C)1 − q/(p + q) D)1 − p/(p + q) E)1/(p + q)

Question

Quizplus · Accepted Answer

α = 1 − q/(p + q) because α is the smoothing constant, which is equal to 1 minus the weight of the previous forecast value.

If a Researcher Is Using Exponential Smoothing and Determines That