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Some comments on the initialization of exponential smoothing
Journal article   Peer reviewed

Some comments on the initialization of exponential smoothing

Johannes Ledolter and Bovas Abraham
Journal of forecasting, Vol.3(1), pp.79-84
01/1984
DOI: 10.1002/for.3980030109

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Abstract

It is shown that the traditional choice for the initial smoothed statistics in general exponential smoothing leads to the same forecasts as the equivalent ARIMA model, provided that one uses zero starting values for the initial shocks. In addition, an initialization which uses ‘backforecasts’ as initial smoothed statistics is considered, and its relationship to unconditional least squares is explored. Copyright © 1984 John Wiley & Sons, Ltd.
ARIMA: theory Coefficient choice Exponential smoothing Initialization Time seres

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