STA2604 ASSIGNMENT 2 FULL DETAILED SOLUTIONS UNISA 2021
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Course
STA2604
Institution
University Of South Africa (Unisa)
STA2604 ASSIGNMENT 2 FULL DETAILED SOLUTIONS UNISA 2021
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The additive model is useful when the seasonal variation is relatively constant
over time.
The multiplicative model is useful when the seasonal variation increases over
time.
1b)
Holts trend corrected exponential smoothing:
It is an extension of Simple Exponential Smoothing method. Holt extended exponential
smoothing method to allow forecasting the data with trend.
The time series data which shows only trend pattern is appropriate to use for Holts
trend corrected exponential smoothing.
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