The table below shows the optimal smoothing constants from applying exponential smoothing to data, using automated model
Question:
The table below shows the optimal smoothing constants from applying exponential smoothing to data, using automated model selection [Note: Such automated selection can be performed in RapidMiner with the Optimize Parameter (Grid) operator by nesting the Forecast Validation operator inside it]:
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?
Step by Step Answer:
Machine Learning For Business Analytics
ISBN: 9781119828792
1st Edition
Authors: Galit Shmueli, Peter C. Bruce, Amit V. Deokar, Nitin R. Patel