What is true about a (alpha) in the Exponential Smoothing Forecast (ESF) method?

Question

Options

• A(alpha) equals the old forecast.
• B(alpha) is always greater than one.
• C(alpha) is calculated by Oracle Inventory.
• D(alpha) is multiplied by the forecast error to determine the adjustment.
• E(alpha) equals the old forecast plus a portion of the forecast error from the previous period.

• A
  5% (2)
• B
  3% (1)
• C
  8% (3)
• D
  72% (28)
• E
  13% (5)

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