Question: Q 8 ( Exponential Smoothing Holts Method ) For the following time series:tY 1 3 2 5 3 9 4 2 0 5 1 2
QExponential Smoothing Holts MethodFor the following time series:tYa Plot the time series and superimpose the linear Trend. Calculate the slope of the Trend from t to t and comment on whether Holts Trend adjustment method is appropriate for forecasting. marksb Use Holts Trend adjustment method to forecast Y for t with Start your calculations from t Start your calculations from t marksc Obtain the values of and which minimize the MSE and superimpose the forecasts on the time series plot. marksd Is your view on the suitability of Holts method justified by the forecast plot? Justify your answer. What do the optimal values of and imply?
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