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Alinara [238K]
3 years ago
12

When using exponential​ smoothing, the smoothing constant

Social Studies
1 answer:
IrinaVladis [17]3 years ago
6 0

Answer:

C.

Explanation:

When using exponential​ smoothing, the smoothing constant

C. can be determined using MAD.

MAD is mean absolute deviation for forecast shows that the deviation of forecasted demand from the actual demand.

Forecast MAD is used in three contexts.

1.As a basis for calculating allowable margin of error

2. To periodically recalculate alpha values when using forecast methods based on adaptive exponential smoothing.

3. When calculating the standard deviation for forecast error when setting the dimensions for safety stock.

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