The major decision with exponential smoothing forecasts is determining the ideal number of periods to include in the average.

Question

Quizplus · Accepted Answer

The major decision with exponential smoothing forecasts is determining the smoothing constant (alpha), not the number of periods to include in the average. The smoothing constant determines the weight given to the most recent observation relative to past observations.

The Major Decision with Exponential Smoothing Forecasts Is Determining the Ideal