In exponential smoothing,the smoothing constant,alpha,
A)is between 0.0 and 0.5
B)reflects the weight given the first period data
C)reflects the weight given the most recent data
D)is a weight that reflects a trend in the demand data

Question

Quizplus · Accepted Answer

The smoothing constant, alpha, in exponential smoothing reflects the weight given to the most recent data. It is a value between 0 and 1, with higher values giving more weight to recent data and lower values giving more weight to older data. It does not necessarily reflect a trend in the demand data, and while the first period data may be used to initialize the forecast, it does not reflect a specific weight given to that data point.

In Exponential Smoothing,the Smoothing Constant,alpha