A company using exponential smoothing technique for forecasting their sales in 2015 is likely to award a 1.5 weight for sales data of 2015,2.0 weight for sales data from 2014,and 2.5 weight for the sales data from 2012.

Question

Quizplus · Accepted Answer

The weights assigned to the sales data are not consistent with the principles of exponential smoothing, which assigns higher weights to more recent data. In this case, the highest weight is assigned to data from 2012, which is the oldest data. Therefore, the statement is false.

A Company Using Exponential Smoothing Technique for Forecasting Their Sales