Increasing the Value of Alpha (α)In an Exponential Smoothing Model

question 14

Multiple Choice

Increasing the value of alpha (α) in an exponential smoothing model would produce which of the following results?

• A)Reduce the influence of more recent demands in computing future forecasts
• B)Reduce the amount of data that needs to be stored to support the forecasting process
• C)Increase the sensitivity of the forecast process to recent changes in demand
• D)Reduce the ability of the forecast process to respond to seasonality in demand

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