The simple exponential smoothing forecast method is appropriate when
A)demand has observable trend or seasonality.
B)demand has no observable trend or seasonality.
C)demand has observable trend and seasonality.
D)demand has no observable level or seasonality.

Question

Quizplus · Accepted Answer

Simple exponential smoothing is best suited for demand with no observable trend or seasonality. It is a basic forecasting technique that assigns weights to previous historical data points to predict future values. It is useful in cases where the patterns in the data are not complex and easy to understand.

The Simple Exponential Smoothing Forecast Method Is Appropriate When