Which of the following possible values of α 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

Quizplus · Accepted Answer

The value of α (alpha) in exponential smoothing determines how quickly the forecast responds to errors. A higher alpha value gives more weight to the most recent observations, thus responding more quickly to changes. Among the given options, 0.15 is the highest, making it the correct choice.

Which of the Following Possible Values of α Would Cause