In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naive forecast would yield.

Name: In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naive forecast would yield.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

An alpha (α) of 1.0 in exponential smoothing gives full weight to the most recent observation, effectively making the forecast equal to the last observed value, which is exactly how a naive forecast operates.

In Exponential Smoothing, an Alpha of 1