When using exponential smoothing,if you want the forecast to react quickly to movements in the series,you should choose:
A)values of near 1
B)values of near 0
C)values of midway between 0 and 1
D)it depends on the data set

Question

When using exponential smoothing,if you want the forecast to react quickly to movements in the series,you should choose:
A)values of near 1 
B)values of near 0 
C)values of midway between 0 and 1 
D)it depends on the data set

Quizplus · Accepted Answer

When using exponential smoothing, values of alpha near 1 will put more weight on the most recent observations, causing the forecast to react quickly to any movements in the series. This is useful when the data has high volatility and short-term fluctuations.

When Using Exponential Smoothing,if You Want the Forecast to React