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Statistics and Probability Commons

Open Access. Powered by Scholars. Published by Universities.®

2006

Simulation

Journal of Modern Applied Statistical Methods

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Full-Text Articles in Statistics and Probability

Choosing Smoothing Parameters For Exponential Smoothing: Minimizing Sums Of Squared Versus Sums Of Absolute Errors, Terry E. Dielman May 2006

Choosing Smoothing Parameters For Exponential Smoothing: Minimizing Sums Of Squared Versus Sums Of Absolute Errors, Terry E. Dielman

Journal of Modern Applied Statistical Methods

When choosing smoothing parameters in exponential smoothing, the choice can be made by either minimizing the sum of squared one-step-ahead forecast errors or minimizing the sum of the absolute onestep- ahead forecast errors. In this article, the resulting forecast accuracy is used to compare these two options.