The closer the smoothing constant,α,is to 1.0 the
A)greater the reaction to the most recent demand.
B)greater the dampening,or smoothing,effect.
C)more accurate the forecast.
D)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 short-term changes in demand and less affected by past demand patterns. Therefore, choice A is the best choice.

The Closer the Smoothing Constant,α,is to 1.0 the