Asked by Academic Research on Jun 25, 2024
Verified
The Holt-Winters multiplicative model is based on the equation ________.
A) Ft + 1 = at (bt + St - s - 2)
B) Ft + 1 = at (bt + St - s + 1)
C) Ft + 1 = (at + bt) St - s + 1
D) Ft + 1 = (at + bt -1) St - 2
Holt-Winters Multiplicative Model
A forecasting technique that accounts for seasonality, trend, and error in time series data, using multiplicative methods to adjust for these components.
- Gain insight into the variances between Holt-Winters additive and multiplicative approaches.
Verified Answer
DL
Daniel LuciaJun 25, 2024
Final Answer :
C
Explanation :
The correct equation for the Holt-Winters multiplicative model involves terms for level, trend, and seasonal components, which are combined in a multiplicative manner. The given choices are obfuscated with placeholder symbols, but option C most closely resembles the structure of a multiplicative model by combining level, trend, and seasonal components in a formulaic manner.
Learning Objectives
- Gain insight into the variances between Holt-Winters additive and multiplicative approaches.
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