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 value of $\alpha$ in exponential smoothing gives more weight to recent observations, making the forecast respond more quickly to changes or errors. Among the given options, 0.15 is the highest value, thus it will respond the most quickly.

Which of the Following Possible Values Of α\alphaα Would Cause Exponential Smoothing to Respond the Most Quickly to Exponential

Which of the Following Possible Values Of $\alpha$ Would Cause Exponential Smoothing to Respond the Most Quickly to Exponential