Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?
A) 0
B) 0.01
C) 0.05
D) 0.1
E) 0.15

Question

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?
A) 0
B) 0.01
C) 0.05
D) 0.1
E) 0.15

Quizplus · Accepted Answer

A higher alpha value in exponential smoothing gives more weight to recent observations, making the forecast more responsive to changes and errors. Among the given options, 0.15 is the highest, thus it would respond the most quickly.

Which of the Following Possible Values of Alpha Would Cause