If a Researcher Is Using Exponential Smoothing and Determines That

question 102

Multiple Choice

If a researcher is using exponential smoothing and determines that the forecast for the next period (F_{t + 1}) is the weighted average of the actual value for the previous period (X_t) and the forecast value for the previous period (F_t) , with weights of p and q respectively, then α = ______.

• A)p/q
• B)q/p
• C)1 − q/(p + q)
• D)1 − p/(p + q)
• E)1/(p + q)

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