Use Holt-Winters multiplicative method to create a seasonal model that minimizes the MSE for the data set.

Question:

Use Holt-Winter’s multiplicative method to create a seasonal model that minimizes the MSE for the data set. Use Solver to determine the optimal values of a, b, and g.

a. What are the optimal values of a, b, and g?
b. Prepare a line graph comparing the predictions from this method against the original data.
c. What are the forecasts for the next 4 months using this technique?

Step by Step Answer:

Question Posted: