If a Firm Produced a Product That Was Experiencing Growth

question 68

Multiple Choice

If a firm produced a product that was experiencing growth in demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be which of the following?

• A) Close to zero.
• B) A very low percentage, less than 10%.
• C) The more rapid the growth, the higher the percentage.
• D) The more rapid the growth, the lower the percentage.
• E) 50% or more.

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