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Basic Value

Hi Experts,

I want to know the following terms. Please explain me with examples.

1. Basic Value: What do you mean by basic value? Is it the original history or do we get this by any calculation? If it is through any calculation then what kind of data we take into consideration to get basic value?

2. I have seen the formula as follows:

Basic(t), trend(t), seasonal(t) = Function(actual(t), basic(t-1), trend(t-1), seasonal(t-1s))

Forecast = Function(basic(t), trend(t), seasonal(t))

Can anyone explain this as I am in confusion about.

Thanks in advance


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