In adjusted exponential smoothing, the closer beta is to ________, the stronger a trend is reflected.
A) -1 or 1
B) -1
C) 0
D) 1

Question

Quizplus · Accepted Answer

The closer beta is to 1, the stronger a trend is reflected in adjusted exponential smoothing. A value of 0 for beta would result in simple exponential smoothing, which would not reflect trends. A value of -1 or 1 for beta would result in double exponential smoothing, which is used to forecast data with a linear trend. A value of -1 for beta would also result in a reflection of negative trends, which is not applicable in most forecasting scenarios.

In Adjusted Exponential Smoothing, the Closer Beta Is to ________