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Home > Terms > English, UK (UE) > Alpha smoothing factor
Alpha smoothing factor
In exponential smoothing, the factor used to smooth or philtre 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.
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