The forecasting model that uses the constant alpha as an adjustment is
A) exponential smoothing.
B) historical analogy.
C) mean absolute deviation.
D) moving average.
E) weighted moving average.

Question

Quizplus · Accepted Answer

Exponential smoothing uses a constant alpha (α) as a smoothing factor to give different weights to past observations, with the most recent observations generally receiving more weight. This constant is used to adjust the level of the forecast.

The Forecasting Model That Uses the Constant Alpha as an Adjustment