Wayne Rexburg,a Marketing Analyst for Bosco Incorporated,uses Exponential Smoothing Techniques

Multiple Choice

Wayne Rexburg,a marketing analyst for Bosco Incorporated,uses exponential smoothing techniques to forecast sales.If Wayne decides to increase the smoothing constant from 0.4 to 0.8,he is:

A) Decreasing the influence of sales in recent periods in the forecast,while increasing the influence of sales in earlier periods in the forecast.
B) Doubling the influence of forecasted sales in time t.
C) Increasing the influence of sales in recent periods in the forecast,while decreasing the influence of sales in earlier periods.
D) Damaging the integrity of the forecast because the smoothing constant should remain the same;its value is not arbitrary.
E) Enhancing the validity of the forecast because the influence of sales in recent periods - the most relevant periods - is increased while the influence of sales in past periods is decreased.