Question: Predict Inc., is using a simple exponential smoothing model to forecast their monthly sales but they are not sure of the best alpha value to

Predict Inc., is using a simple exponential smoothing model to forecast their monthly sales but they are not sure of the best alpha value to use. They ran some computerized forecasts with different alpha values and reported the following. What alpha value should they use?

alpha 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50
MAD 18.4 14.7 13.2 16.2 15.3 11.7 10.2 12.5

Group of answer choices

0.45

0.15

0.2

0.35

0.5

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