# ets

##### Exponential smoothing state space model

Returns ets model applied to `y`

.

- Keywords
- ts

##### Usage

```
ets(
y,
model = "ZZZ",
damped = NULL,
alpha = NULL,
beta = NULL,
gamma = NULL,
phi = NULL,
additive.only = FALSE,
lambda = NULL,
biasadj = FALSE,
lower = c(rep(1e-04, 3), 0.8),
upper = c(rep(0.9999, 3), 0.98),
opt.crit = c("lik", "amse", "mse", "sigma", "mae"),
nmse = 3,
bounds = c("both", "usual", "admissible"),
ic = c("aicc", "aic", "bic"),
restrict = TRUE,
allow.multiplicative.trend = FALSE,
use.initial.values = FALSE,
na.action = c("na.contiguous", "na.interp", "na.fail"),
...
)
```

##### Arguments

- y
a numeric vector or time series of class

`ts`

- model
Usually a three-character string identifying method using the framework terminology of Hyndman et al. (2002) and Hyndman et al. (2008). The first letter denotes the error type ("A", "M" or "Z"); the second letter denotes the trend type ("N","A","M" or "Z"); and the third letter denotes the season type ("N","A","M" or "Z"). In all cases, "N"=none, "A"=additive, "M"=multiplicative and "Z"=automatically selected. So, for example, "ANN" is simple exponential smoothing with additive errors, "MAM" is multiplicative Holt-Winters' method with multiplicative errors, and so on.

It is also possible for the model to be of class

`"ets"`

, and equal to the output from a previous call to`ets`

. In this case, the same model is fitted to`y`

without re-estimating any smoothing parameters. See also the`use.initial.values`

argument.- damped
If TRUE, use a damped trend (either additive or multiplicative). If NULL, both damped and non-damped trends will be tried and the best model (according to the information criterion

`ic`

) returned.- alpha
Value of alpha. If NULL, it is estimated.

- beta
Value of beta. If NULL, it is estimated.

- gamma
Value of gamma. If NULL, it is estimated.

- phi
Value of phi. If NULL, it is estimated.

- additive.only
If TRUE, will only consider additive models. Default is FALSE.

- lambda
Box-Cox transformation parameter. If

`lambda="auto"`

, then a transformation is automatically selected using`BoxCox.lambda`

. The transformation is ignored if NULL. Otherwise, data transformed before model is estimated. When`lambda`

is specified,`additive.only`

is set to`TRUE`

.- biasadj
Use adjusted back-transformed mean for Box-Cox transformations. If transformed data is used to produce forecasts and fitted values, a regular back transformation will result in median forecasts. If biasadj is TRUE, an adjustment will be made to produce mean forecasts and fitted values.

- lower
Lower bounds for the parameters (alpha, beta, gamma, phi)

- upper
Upper bounds for the parameters (alpha, beta, gamma, phi)

- opt.crit
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).- nmse
Number of steps for average multistep MSE (1<=

`nmse`

<=30).- bounds
Type of parameter space to impose:

`"usual"`

indicates all parameters must lie between specified lower and upper bounds;`"admissible"`

indicates parameters must lie in the admissible space;`"both"`

(default) takes the intersection of these regions.- ic
Information criterion to be used in model selection.

- restrict
If

`TRUE`

(default), the models with infinite variance will not be allowed.- allow.multiplicative.trend
If

`TRUE`

, models with multiplicative trend are allowed when searching for a model. Otherwise, the model space excludes them. This argument is ignored if a multiplicative trend model is explicitly requested (e.g., using`model="MMN"`

).- use.initial.values
If

`TRUE`

and`model`

is of class`"ets"`

, then the initial values in the model are also not re-estimated.- na.action
A function which indicates what should happen when the data contains NA values. By default, the largest contiguous portion of the time-series will be used.

- ...
Other undocumented arguments.

##### Details

Based on the classification of methods as described in Hyndman et al (2008).

The methodology is fully automatic. The only required argument for ets is the time series. The model is chosen automatically if not specified. This methodology performed extremely well on the M3-competition data. (See Hyndman, et al, 2002, below.)

##### Value

An object of class "`ets`

".

The generic accessor functions `fitted.values`

and `residuals`

extract useful features of the value returned by `ets`

and associated
functions.

##### References

Hyndman, R.J., Koehler, A.B., Snyder, R.D., and Grose, S. (2002)
"A state space framework for automatic forecasting using exponential
smoothing methods", *International J. Forecasting*, **18**(3),
439--454.

Hyndman, R.J., Akram, Md., and Archibald, B. (2008) "The admissible
parameter space for exponential smoothing models". *Annals of
Statistical Mathematics*, **60**(2), 407--426.

Hyndman, R.J., Koehler, A.B., Ord, J.K., and Snyder, R.D. (2008)
*Forecasting with exponential smoothing: the state space approach*,
Springer-Verlag. http://www.exponentialsmoothing.net.

##### See Also

`HoltWinters`

, `rwf`

,
`Arima`

.

##### Examples

```
# NOT RUN {
fit <- ets(USAccDeaths)
plot(forecast(fit))
# }
```

*Documentation reproduced from package forecast, version 8.12, License: GPL-3*