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

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]:

Level 0.4 Trend 0.0 Seasonality 0.1 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?

Level 0.4 Trend 0.0 Seasonality 0.1

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