The output in Figure 18.9 from applying Holt-Winters exponential smoothing to data, using "optimal" smoothing constants.

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?

Transcribed Image Text:

Winters' exponential smoothing Smoothing constant(s) Level 1.000 Trend 0.000 Seasonality 0.246 FIGURE 18.9 OPTIMIZED SMOOTHING CONSTANTS.