I am using the forecast package in R. I wanted to know how the ets() function finds the value of $\alpha$, $\beta$ and $\gamma$?

Is it by minimizing the SSE or some other criteria?

  • 1
    $\begingroup$ The question is clearly answered by the help for the function - ?ets $\endgroup$
    – Glen_b
    Commented Nov 21, 2012 at 0:17

1 Answer 1


The default is MLE. The argument opt.crit controls the optimization criterion. from the help file:


Optimization criterion. One of "mse" (Mean Square Error), "amse" (Average MSE over first nmse forecast horizons), "sigma" (Standard deviation of residuals), "mae" (Mean of absolute residuals), or "lik" (Log-likelihood, the default).


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