If a Firm Produced a Standard Item with Relatively Stable

question 51

Multiple Choice

If a firm produced a standard item with relatively stable demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be in which of the following ranges?

• A) 5 to 10 percent
• B) 20 to 50 percent
• C) 20 to 80 percent
• D) 60 to 120 percent
• E) 90 to 100 percent