2. What is the equivalent model for alpha = 1 in a simple exponential model?

a. naive forecast

b. moving average with a window of 6

c. moving average

d. holt's winters method

3. What does beta = 0 in holt's methods mean?

a. the model is using the initial value of the trend

b. no updating is necessary in order to arrive at the lowest possible RMSE

c. there is no trend in the dataset

d. the trend is local in the dataset

5. How does Winter's modified Holt's method capture seasonality?

a. detrend the dataset

b. reduce the effects of alpha

c. included seasonal index to the Holt's method

d. increased the level of alpha and beta

6. Which of the following statements indicate local patterns in trend of a dataset?

a. high values of beta

b. low values of beta

c. low values of gamma

d. high values of alpha