When Using Holt's Model,choosing Values of the Smoothing Constant

question 14

Multiple Choice

When using Holt's model,choosing values of the smoothing constant that are near 1 will result in forecast models that react very

• A)quickly to changes in the level.
• B)quickly to changes in the trend.
• C)quickly to changes in the level and the trend.
• D)slowly to changes in the level and the trend.

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Definitions:

Standard Deviations

An indicator of how much the values in a group differ from each other.

Samples

Collections or subsets of data taken from a larger population, used for statistical analysis or testing hypotheses.

Level Shift

A sudden and lasting change in the average level of a time series data, indicating a structural break.

Assignable Variation

Variation in a process that can be traced to a specific cause, as opposed to random or inherent variation.