Topics in Time Series Analysis. II. When are Exponential Smoothing Forecast Procedures Optimal
Abstract
This paper shows that exponential smoothing forecast procedures, in particular those recommended by Brown, will provide optimal (MMSE) forecasts only if the underlying process is a member of a particular restricted class of ARIMA models. Actual study of time series, however, does not give any empirical support to this restricted class of models.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1975
- Accession Number
- ADA026309
Entities
People
- George E. P. Box
- Johannes Ledolter
Organizations
- University of Wisconsin Madison Department of Statistics