Which Statement Is Correct Regarding Forecasting Using an Exponential Smoothing

question 64

Multiple Choice

Which statement is correct regarding forecasting using an exponential smoothing model?

• A)A model with low α is more responsive to new data than a model with high α.
• B)Increasing α will typically increase the forecast accuracy.
• C)As α increases, more weight is put on recent data.
• D)When data have an upward trend, the forecasts will have an upward bias.

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