What is the danger of using optimal smoothing constant value

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Reference no: EM131925973

Problem

Optimizing Holt-Winter's Exponential Smoothing. The table below shows the optimal smoothing constants from applying exponential smoothing to data, using automated model selection:

Level      1,000
Trend     0.000
Seasonality   0.246

a. The value of zero that is obtained for the trend smoothing constant means that (choose one of the following):

• There is no trend.

• The trend is estimated only from the first two periods.

• The trend is updated throughout the data.

• The trend is statistically insignificant.

b. What is the danger of using the optimal smoothing constant values?

Reference no: EM131925973

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