In the exponential smoothing with trend adjustment forecasting method, β is the
A)new forecast.
B)Y-axis intercept.
C)independent variable.
D)trend smoothing constant.

Question

Quizplus · Accepted Answer

In the exponential smoothing with trend adjustment method, β is the trend smoothing constant. It determines the rate at which the forecast model adapts to changes in the trend of the data. A higher value of β places more weight on recent observations, whereas a lower value of β places more weight on past observations. Therefore, D is the correct answer.

In the Exponential Smoothing with Trend Adjustment Forecasting Method, β