Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?
A)0
B)0.01
C)0.1
D)0.5
E)1.0

Question

Quizplus · Accepted Answer

A naive forecast model uses the last observed value as the forecast for the next period without any modification. An exponential smoothing forecast with a smoothing constant (alpha) of 1.0 would give the full weight to the most recent observation, making it equivalent to a naive forecast.

Which of the Following Smoothing Constants Would Make an Exponential