A to Z
Get the Widget
Alpha Smoothing Factor
In exponential smoothing, the factor used to smooth or filter the data from the most recent period. (ex.- an alpha factor of 0.1 means to give the most recent data period a weighting of 0.1 and the previous period(s) a weighting of 0.9). A higher alpha indicates the future forecast will more closely resemble recent history, and is more likely to vary greatly with each recalculation.
A resource provided by © 2019 BPI