An exponential smoothing technique in which the smoothing constant alpha is equal to one is equivalent to a regression forecasting model.

Question

Quizplus · Accepted Answer

An exponential smoothing technique with a smoothing constant alpha equal to one is equivalent to a naive forecasting model, not a regression forecasting model. This is because it simply sets the forecast to be equal to the last observed value.

An Exponential Smoothing Technique in Which the Smoothing Constant Alpha