I am trying to learn Holt Winters exponential smoothing. In the algorithm there are three indices involved (level, trend, seasonality) while forecasting.

My questions:

What is the interpretation of these 3 indices?
How do I differentiate between different values of these indices? For example, what is the difference between level 100 and level 200 or what is the difference between trend 2 and trend 5?
How do we initiate these values?

Any help will be greatly appreciated.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.