Determination of Optimal Smoothing Constants for Foreign Remittances in Bangladesh

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Md. Nayan Dhali 1,* Md. Biddut Rana 1 Nazrul Islam 1 Deepa Roy 1 Mst. Sharmin Banu 1

1. Jashore University of Science and Technology, Jashore-7408, Bangladesh

* Corresponding author.


Received: 18 Mar. 2021 / Revised: 30 Apr. 2021 / Accepted: 25 May 2021 / Published: 8 Dec. 2021

Index Terms

Foreign Remittance, Holt’s Method, and Smoothing Constants.


Remittance is the tie that is sent to the country by earning money from abroad. In present Bangladesh, remittance is playing an important role in increasing reserves and revenue. For about two decades remittance has been contributing a huge portion of export earnings. Remittances have a significant impact on the budget of Bangladesh and also the budget depends a lot on remittances. So it is very crucial to know the future remittance to make an annual budget for upcoming year. This paper concentrates on choosing the appropriate smoothing constants for foreign remittances forecasting by Holt’s method. This method is very popular quantitative skilled in forecasting. The forecasting of this deftness depends on optimal smoothing constants. So, choosing an optimal smoothing constant is very important to minimize the error of forecasting. We have demonstrated the techniques by presenting actual remittances and also presented graphical comparisons between actual and forecasting remittances for the optimal smoothing constants.

Cite This Paper

Md. Nayan Dhalia, Md. Biddut Rana, Nazrul Islam, Deepa Roy, Mst. Sharmin Banu," Determination of Optimal Smoothing Constants for Foreign Remittances in Bangladesh ", International Journal of Mathematical Sciences and Computing(IJMSC), Vol.7, No.4, pp. 21-26, 2021. DOI: 10.5815/ijmsc.2021.04.02


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