Which of the following statements is accurate regarding simple exponential smoothing?
A) The smoothing constant, beta, determines the weight assigned to most recent demand
B) The higher the smoothing constant, the more responsive the forecast to demand changes
C) If the smoothing constant was 1, the forecast would be equal to last period's forecast.
D) If the smoothing constant was 0, the forecast would equal to last period's demand.

Question

Quizplus · Accepted Answer

The higher the smoothing constant (alpha, not beta), the more weight is given to the most recent actual demand, making the forecast more responsive to changes in demand.

Which of the Following Statements Is Accurate Regarding Simple Exponential