Which of the Following Smoothing Constants Would Make an Exponential

question 71

Multiple Choice

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

• A) 0
• B) 1 divided by the number of periods
• C) 0.5
• D) 1.0
• E) cannot be determined

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Definitions:

Experimental

Pertaining to a method of investigation or testing that involves controlled conditions to explore hypotheses, establish causality, or discover effects.

Logical

Pertaining to clear, formal reasoning, or relating to the use of reason and understanding to assess ideas and arguments.

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Intuitive thinking is a cognitive process that occurs without explicit reasoning, relying on instinctive feelings rather than systematic analysis of information.

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Based on or in accordance with reason or logic.