Assignment:
Consider the demand data in the table below:
|
1
|
1
|
2
|
3
|
4
|
5
|
6
|
|
Yt
|
35
|
50
|
60
|
72
|
83
|
90
|
We want to apply exponential smoothing with trend:
• Using a fit sample of size 3, initialize the smoother using linear regression.
• Choose smoothing coefficients and evaluate MAPE and RMSE on the test sample.
• After observing demand in the last time bucket, calculate forecasts with horizons h = 2 and h = 3.
Provide complete and step by step solution for the question and show calculations and use formulas.