Question: Error = Actual - Forecast Our forecast accuracy is declining, ie , the gap between Actual and Forecast is increasing. In an exponential smoothing model,

Error = Actual - Forecast
Our forecast accuracy is declining, ie, 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
Ft+1=aD+(1-a) Ft
a. decrease value of alpha
b. stay with the same alpha
c. increase value of alpha
Od. consult the 'predict your future for $5' shop across the street

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