Exponential smoothing models are an important prediction tool in macroeconomics, finance and business. This paper presents the analytical forecasting properties of the random coefficient exponential smoothing model in the multiple source of error framework. The random coefficient state-space...

Problem Definition. Firms that sell products over a limited selling season often have only imperfect information about (a) the exact timing of that season, (b) the demand volume to expect, and (c) the temporal distribution of demand over the selling season. Given these uncertainties, firms must...