The Exponential Smoothing Forecasting Technique Slowly Responds to Changes in the Mean

question 5

Multiple Choice

The exponential smoothing forecasting technique slowly responds to changes in the mean level of demand when

• A) a small alpha value is used.
• B) a large alpha value is used.
• C) an alpha value of 1.0 is used.
• D) size of the alpha value does not affect the responsiveness.

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Definitions:

Media Richness

The capacity of a communication medium to effectively convey information and foster understanding.

Task-Related Communication

The exchange of information and coordination efforts specifically focused on the completion and management of work-related tasks.

Probability

A measure of the likelihood that a given event will occur, often expressed as a number between 0 (impossible) and 1 (certain).

Grapevines

Informal channels of communication within an organization, often characterized by the unofficial spread of information.