When Is Exponential Smoothing Equivalent to the "Naïve" Approach to Forecasting

question 114

Multiple Choice

When is exponential smoothing equivalent to the "naïve" approach to forecasting?

• A) When the smoothing constant is chosen randomly
• B) α = 0
• C) α = 1
• D) α = .5
• E) When next month's forecast equals this month's forecast

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