When is the exponential smoothing model equivalent to the naïve forecasting model?
A)α = 0
B)α = 0.5
C)α = 1
D)never

Question

Quizplus · Accepted Answer

The exponential smoothing model is equivalent to the naïve forecasting model when the smoothing parameter α is equal to 1. This is because the value of the forecast is simply the same as the value of the previous observation, and α=1 gives full weight to the most recent observation.

When Is the Exponential Smoothing Model Equivalent to the Naïve