When new products show a steady increase in sales,a low alpha value for the smoothing constant should be used in conjunction with the exponential smoothing technique in order to minimize forecast errors.

Question

Quizplus · Accepted Answer

A low alpha value gives more weight to older data, which is not ideal for capturing trends in increasing sales. A higher alpha value is better for quickly adapting to changes in sales trends.

When New Products Show a Steady Increase in Sales,a Low