Question: Reconsider the linear trend data in Table E4.4. Take the first difference of this data and plot the time series of first differences. Has differencing
Reconsider the linear trend data in Table E4.4. Take the first difference of this data and plot the time series of first differences. Has differencing removed the trend? Use exponential smoothing on the first 11 differences. Instead of forecasting the original data, forecast the first differences for the remaining data using exponential smoothing and use these forecasts of the first differences to obtain forecasts for the original data.
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