Hi!

I am modeling forecasting functions in MS Excel. In case of weighted
average, exponential smoothing and Holt Winter's methods one has to
optimise the coefficients alpha, beta or gamma using any error
calculations such as MAE, MSE, RMSE or MAPE.

Has anybody give a thought about mathematical background of such a
optimization with Solver such as:

- which is better to optimize MAE or MSE?
- in the first case we are talking about linear optimization in
the second non linear?
- Anybody draw error function for MAE or MSE and tried to
describe solver optimization function in Coordinate System for both
functions?

I am also open for cooperation with anyone who is involved in
business forecasting training!!!

Regards

Rado