For this exercise use data set eggs , the price of a dozen eggs in the United States from 1900–1993. Experiment with the various options in the holt() function to see how much the forecasts change...

For this exercise use data set eggs , the price of a dozen eggs in the United States from 1900–1993. Experiment with the various options in the holt() function to see how much the forecasts change with damped trend, or with a Box-Cox transformation. Try to develop an intuition of what each argument is doing to the forecasts.

[Hint: use h=100 when calling holt() so you can clearly see the dierences between the various options when plotting the forecasts.]

Which model gives the best RMSE?