Question: The choice of the smoothing constants and has a considerable effect on the accuracy of the forecasts obtained by using exponential smoothing with

The choice of the smoothing constants α and β has a considerable effect on the accuracy of the forecasts obtained by using exponential smoothing with trend. For each of the following time series, set α = 0.2 and then compare MAD obtained with β = 0.1, 0.2, 0.3, 0.4, and 0.5. Begin with initial estimates of 50 for the expected value and 2 for the trend.
(a) 52 55 55 58 59 63 64 66 67 72 73 74
(b) 52 55 59 61 66 69 71 72 73 74 73 74
(c) 52 53 51 50 48 47 49 52 57 62 69 74

Step by Step Solution

3.37 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Choose 01 b Cho... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

545-M-S-F (430).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!