a. The larger the number of periods (\'n\") used in the simple moving average fo

Question

a. The larger the number of periods ('n") used in the simple moving average forecasting method, the more sensitive the forecast to the demand changes. b. Forecasts of suppliers tend to be less accurate than the forecasts of retailers. c. Forecasts of individual products tend to be more accurate than the forecasts of product families. d. The smaller "alpha" value of a simple exponential smoothing leads to a "more responsive" forecast e. Long-term forecasts tend to be more accurate than the short-term forecasts

Explanation / Answer

Option D: The smaller "alpha" value of a simple exponential smoothing leads to a "more responsive" forecast.

It is because lesser the alpha value greater the forecast. So smaller alpha value leads to more respnsive forecast.

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