I know this is a very basic question, but its not clarified within my lectures. Essentially when you have ARIMA(0,1,1) You can simplify the theta 1 term in order to obtain SES via stating its (1-alpha), but why would the theta 1 term be considered 1 - alpha.

  • $\begingroup$ Have you worked through the math to convert the expression for an ARIMA(0,1,1) model to an exponential smoothing model? It's just rearranging terms. If you do so, it will become clear. $\endgroup$ – jbowman Jan 11 at 16:13
  • $\begingroup$ I've worked through the math, but I wondered if there was any logic as to behind why we let alpha equate 1-theta, like any theoretical logic, or it just math? $\endgroup$ – Student Jan 11 at 20:45
  • $\begingroup$ It's just math, really. $\endgroup$ – jbowman Jan 11 at 20:47

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