Themeblock 4. Temporal Dimension

5 important questions on Themeblock 4. Temporal Dimension

What is the formula for Simple Index?

It=Yt/Y0*100

What is the formula for unweighted compound index?

It=(sumYit)/(sumYi0)*100

What can be a great disadvantage of Exponential Smoothing?

It does not take seasonal changes into account, all predictions are the same
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What is the formula to describe exponential smoothing? Give the formula and fill in for period 1 & 2

Et=wYt+(1-w)Et-1
E1=Y1
E2=wY2+ (1-w)E1

Give the describing formula for the Holt-Winters model

Et= wYt+(1-w)(Et-1+Tt-1)
Tt=v(Et-Et-1)+(1-v)Tt-1

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