Question

In a simple exponential smoothing model the manager would prefer a large value of ɑ if he/she wants to respond well to a system characterized by a low level of random behavior but often subjected to a real change in the demand? T or F ...Exponential smoothing assumes that past data is more indicative of the future than the most recent occurrence? ...T or F Subjective forecasting methods should mostly be used for long-term forecast horizons? T or F

Answer 1

1) :- it is true,  a simple exponential smoothing model the manager would prefer a large value of ɑ if he/she wants to respond well to a system characterized by a low level of random behavior but often subjected to a real change in the demand

•Simple exponential smoothing model are those model which are based on rule of thumb technique for smoothing time series data by using exponential window function.

2) :--it is false ,Exponential smoothing assumes that past data is more indicative of the future than the most recent occurrence.

•Because in simple exponential smoothing model more recent data are more inductive of the future than distance past data.

3) :- it is true, Subjective forecasting methods should mostly be used for long-term forecast horizons

•Subjective forecasting method is more qualitative basis

•Subjective approach is used when event have lack of historical quantity data .

•Objective approach arebused for nearer forecast horizon.