Table 7

Out of sample test: forecasting results by data length (HW vs HMM)

Data lengthMAPE
Forecast horizon: average 2 and 3 week
Holt-Winters model (HW)Hidden Markov model (HMM)
24-month (730 days)13.6821.56
12-month (365 days)14.1211.07
6-month (182 days)14.1111.46
3-month (84 days)11.8810.40
2-month (56 days)16.9116.87
1-month (28 days)19.4417.89

Source(s): Authors’ own work

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