The closer the smoothing constant,α,is to 1.0
A)the greater the reaction to the most recent demand.
B)the greater the dampening,or smoothing,effect.
C)the more accurate the forecast.
D)the less accurate the forecast.

Question

Quizplus · Accepted Answer

The closer the smoothing constant, α, is to 1.0, the greater the reaction to the most recent demand. This means that the forecast will be more responsive to recent changes in demand, resulting in a better forecast for the short term. However, this also means that the forecast will be less accurate for the long term as it is overly influenced by recent demand.

The Closer the Smoothing Constant,α,is to 1.0