In simple exponential smoothing forecasting, to give higher

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In simple exponential smoothing forecasting, to give higher

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In simple exponential smoothing forecasting, to give higher weightage to recent demand information, the smoothing constant must be close to

1. – 1
2. zero
3. 0.5
4. 1.0

Correct Option: D

We know that f_t = f_t-1 + α(D_t – f_t-1)
= f_t-1 (1 – α) + D_t
For, f_t = D_t
1 – α = 0
⇒ α = 1
Conclusion:
It is showing the limit of responsiveness