We want to apply exponential smoothing with trend using a


Question: Consider the demand data in the table below:

1156_MAPE.png

We want to apply exponential smoothing with trend:

• Using a fit sample of size 3, initialize the smoother using linear regression.

• Choose smoothing coefficients and evaluate MAPE and RMSE on the test sample.

• After observing demand in the last time bucket, calculate forecasts with horizons h = 2 and h = 3.

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