When using simple exponential smoothing,the value of the smoothing constant must be between ____ and ____.
A)0,×
B)0,100
C)-1,1
D)-1,0
E)0,1

Question

When using simple exponential smoothing,the value of the smoothing constant &#61537;must be between ____ and ____.
A)0,×
B)0,100
C)-1,1
D)-1,0
E)0,1

Quizplus · Accepted Answer

The value of the smoothing constant must be between 0 and 1 because it represents the weight given to the most recent observation in the smoothing process. A value of 0 would give all the weight to the initial estimate, while a value of 1 would give equal weight to all observations, which defeats the purpose of smoothing. Therefore, the best choice is E, which represents the valid range for the smoothing constant in this case.

When Using Simple Exponential Smoothing,the Value of the Smoothing Constant