To select a value for alpha when using exponential smoothing

To select a value for alpha when using exponential smoothing

a.

use a small alpha when the series varies substantially.

b.

use a large alpha when the series has little random variability.

c.

use a value between 0 and 1

d.

All of the alternatives are true.

Solution

true answer is

b.

use a large alpha when the series has little random variability.