In this course, explore the concept of exponential smoothing for forecasting, including its basic principles and applications. Learn how to assemble the forecast equation and optimize forecasts using simple exponential smoothing techniques.
What will you learn?
Demonstrate how to evaluate a baseline using a correlogram.
Identify the drawbacks of using Microsoft Excel’s exponential smoothing tool.
Explain the different ways you can initialize the first forecast.
Compare the average raw deviation forecast with the mean absolute deviation forecast method.
Break down the reasons to use R instead of Excel for exponential smoothing.