If a Researcher Is Using Exponential Smoothing and Determines That

Multiple Choice

If a researcher is using exponential smoothing and determines that the forecast for the next period (F_{t + 1}) is the weighted average of the actual value for the previous period (X_t) and the forecast value for the previous period (F_t) , with weights of p and q respectively, then α = ______.

A) p/q
B) q/p
C) 1 − q/(p + q)
D) 1 − p/(p + q)
E) 1/(p + q)