Using Exponential Smoothing,if We Want Forecasts to Be Very Responsive

question 16

Multiple Choice

Using exponential smoothing,if we want forecasts to be very responsive to recent demand,the value of alpha should be

• A) large.
• B) moderate.
• C) small.
• D) The value of alpha does not matter.

---

Definitions:

Type II Error

The error that occurs when the null hypothesis is not rejected when it is actually false, also known as a false negative result.

Type I Error

Mistakenly refusing a true null hypothesis, popularly known as a "false positive."

Nominal Data

Data that are categorized into distinct groups without implying any ranked order among them.

Confidence Level

The probability, expressed as a percentage, that the result of an experiment or study will fall within a specified range of values.