As the Exponential Smoothing Constant Increases, the Resulting Forecast Tends

question 120

Multiple Choice

As the exponential smoothing constant increases, the resulting forecast tends to?

• A) Become less responsive to changes in the previous period's demand
• B) Become more responsive to changes in the previous period's demand
• C) Become neither more nor less responsive to changes in the previous period's demand
• D) It is impossible to determine how the forecast will change due to changes in the smoothing constant

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Definitions:

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