In exponential smoothing, the closer alpha is to ________, the greater the reaction to the most recent demand.
A) -1
B) 0
C) 1
D) -1 or 1

Question

Quizplus · Accepted Answer

Alpha is a smoothing constant that determines the weight given to the most recent demand when forecasting. If alpha is close to 1, it means that the most recent demand has a high impact on the forecast, resulting in a greater reaction to the most recent demand. Therefore, choice C is the best answer as it states alpha closer to 1.

In Exponential Smoothing, the Closer Alpha Is to ________, the Greater