Question: 1 . ( 1 2 pts . ) Implement the DES method to calculate the one - day - ahead forecasts for 3 - April

1.(12 pts.) Implement the DES method to calculate the one-day-ahead forecasts for 3-April-2019
to 15-Aug-2019. Use solver to determine the values of LS and TS that minimize the withinsample
RMSE (calculated based on the interval 8-April-2019 to 15-Aug-2019), subject to the
constraint that LS and TS are between 0.01 and 0.99. Report the following:
(2 pts. feasibility, 1 pt. consistency, 2 pts. optimality) Optimal values for LS, TS, and
the RMSE for 8-April-2019 to 15-Aug-2019,
(7 pts.) Values of the level, trend, and one-day-ahead DES forecasts for 9-Aug-2019
to 15-Aug-2019.
v You can use the following information to confirm that you have set up your DES model
correctly: If you set LS = TS =0.5, the value for level, trend, and DES forecast for 15-Aug2019
should be 171.56,2.07, and 171.13, respectively. And the within-sample RMSE should
be 24.3030.
2.(12 pts.) Implement the TES method to calculate the one-day-ahead forecasts for 8-April-2019
to 15-Aug-2019. Assume a weekly seasonal pattern, which means p =7. Use solver to
determine the values of LS, TS, and SS that minimize the within-sample RMSE (calculated based
on the interval 8-April-2019 to 15-Aug-2019), subject to the constraint that LS, TS, and SS are
between 0.01 and 0.99. Report the following:
(2 pts. feasibility, 1 pt. consistency, 2 pts. optimality) Optimal values for LS, TS, SS,
and the RMSE for 8-April-2019 to 15-Aug-2019,
(7 pts.) Values of the level, trend, seasonality indices, one-day-ahead forecasts for 9-
Aug-2019 to 15-Aug-2019.
Hint: You may find the Weekday function useful for the TES forecast calculations.
v You can use the following information to confirm that you have set up your TES model
correctly: If you set LS = TS = SS =0.5, the value for level, trend, seasonality index and TES
forecast for 15-Aug-2019 should be 168.92,-0.39,1.01, and 169.56, respectively. And the
within-sample RMSE should be 27.0830.

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