From the course: Business Analytics: Forecasting with Seasonal Baseline Smoothing
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Minimizing RMSE
From the course: Business Analytics: Forecasting with Seasonal Baseline Smoothing
Minimizing RMSE
- [Instructor] I'm starting in the exercise file 02 01 Begin in the Add Forecast Error worksheet. Often I find it useful to keep two copies of the forecasts on the worksheet where I do the analysis. We've already put forecasts for the seasonal smoothing baseline in column K. Those forecasts start in cell K7. The forecast 7950 is actually the forecast for the next period, just as it says in cell K1. Most of the data in row seven pertains to time period six. And in the normal course of events you would wait for all the data for time period six before you made your forecast for time period seven. But you would normally want to know your forecast for time period seven before the actual data for that period became available. Often you're just at the tail end of period six when you make your forecast for period seven. So to help keep myself straight I do my calculations for the forecast of period seven in row seven. Then I link a cell in row eight back to the forecast made in row seven…
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