-
In simple exponential smoothing forecasting, to give higher weightage to recent demand information, the smoothing constant must be close to
-
- – 1
- zero
- 0.5
- 1.0
Correct Option: D
We know that ft = ft-1 + α(Dt – ft-1)
= ft-1 (1 – α) + Dt
For, ft = Dt
1 – α = 0
⇒ α = 1
Conclusion:
It is showing the limit of responsiveness
