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Unformatted text preview: moving average if the data is fairly consistent over time and does not bounce up and down. Longer moving data moving averages may be necessary for long term planning or if the data appears to be fluxuating quite a bit. This will help your predictions become more accurate. c. When you have a higher alpha, the data is more contingent on previous periods. If there is more of a need for immediate adjustment a higher alpha is recommended. Though seasonal business may require a smaller alpha because there is not a lot of information for them to work with from previous periods. Also if you would like to try to smooth out your set of data a shorter alpha may be required, especially when the data is jumbled and all over the board....
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This note was uploaded on 05/05/2008 for the course OMS 3001 taught by Professor Asokedey during the Spring '08 term at Minnesota.
- Spring '08