Question: Error = Actual - Forecast Our forecast accuracy is declining, i . e . , the gap between Actual and Forecast is increasing. In an

Error = Actual - Forecast
Our forecast accuracy is declining, i.e., the gap between Actual and Forecast is increasing.
In an exponential smoothing model, what should we do to the value of alpha if we wish to reduce the forecast error.
F t+1=\alpha Dt +(1-\alpha ) Ft

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