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

question 98

Multiple Choice

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

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

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