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I have a question about the forecast equation in Holt’s linear trend method used to analyze time-series.

As the forecast equation is prediction = l + hb where l is the last value of the level equation, b the last value of the trend equation and h the time-horizon.

As long as h was 1 I had no problem but how do I do with h = 5? Do I multiply by 5 the last value of b? Do I take the average of the 5 previous values of b? Do I take the fifth last value of b?

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You multiply 5 by the last value of b.

Suppose your last value is 666, and b is 2.

Your forecast 1 period out is 668 Your forecast 2 periods out is 670 ... Your forecast 5 periods out is 676 and so on.

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