Consider the following forecasting model: x^t,t+1=xt+(1)x^t1,t

If decreases from 0.5 to 0.2, then in the forecast for period t+1, which of the following statements is true?

Select all correct answers

The forecast will become more calm.

It will give more weight to the most recent observation, xt.

It will give more weight to the whole history of observations.

The forecasted value will be smaller.

It will give more weight to potential trends in demand.

None of the above.