Select the correct option to complete each of the following statements.

If you decide to use an Alpha value closer to 1 in you exponential smoothing model, it would lead to:

a) A more nervous forecast

b) A holt winter forecast

c) Assuming a stationary demand

Chipe's aggregates its demand when forecasting based on the similar behaviour of its product lines. By doing this, you can expect:

a) Lower forecast accuracy

b) The same results you would get if using disaggregated demand when forecasting

c) Higher forecast accuracy

Considering the global trend towards an increased consumption of organic products, Chipe's demand is showing a positive trend. Based on that you would recommend:

a) Using a Nave forecasting model

b) Using a seasonality factor to incorporate the trend's impact to your model

c) Using the forecasting model represented by the equation x^t,t+r=a^t+(tau)B^t

d) Using a longer time horizon when forecasting for increased accuracy