Which of the following is TRUE regarding the two smoothing constants of the Forecast Including Trend (FIT)model?
A)One constant is positive,while the other is negative.
B)They are called MAD and cumulative error.
C)Alpha is always smaller than beta.
D)One constant smoothes the regression intercept,whereas the other smoothes the regression slope.
E)Their values are determined independently.

Question

Quizplus · Accepted Answer

The two smoothing constants of the FIT model, alpha and beta, are determined independently and their values depend on the level of smoothing desired for the level and trend components of the forecast. None of the other options correctly describe the relationship between the two smoothing constants.

Which of the Following Is TRUE Regarding the Two Smoothing