When is exponential smoothing equivalent to the "naïve" approach to forecasting?
a) When the smoothing constant is chosen randomly
b) a = 0
c) a = 1
d) a = .5
e) When next month's forecast equals this month's forecast
Answer: c) a = 1
When is exponential smoothing equivalent to the "naïve" approach to forecasting?
a) When the smoothing constant is chosen randomly
b) a = 0
c) a = 1
d) a = .5
e) When next month's forecast equals this month's forecast
Answer: c) a = 1