MODEL:

SETS:
   PERIODS /1..8/: OBSERVED, ERROR, PREDICT;
ENDSETS

DATA:

! The degree of the objective. N may be changed
   to 1 to minimize absolute deviation;
   N = 2;

! The observed values of the time series;
   OBSERVED = 10 14 12 19 14 21 19 26;

ENDDATA
! Force Period 1 prediction to 10;
  PREDICT( 1) = 10;
! The objective function;
   [OBJ] MIN= @SUM( PERIODS: @ABS( ERROR) ^ N);

! Calculate the forecasts;
   @FOR( PERIODS( T) | T #GT# 1:
    PREDICT( T) = ALPHA * OBSERVED( T - 1) +
    ( 1 - ALPHA) * PREDICT( T - 1));

! Calculate forecast errors;
   @FOR( PERIODS: ERROR = PREDICT - OBSERVED);

! Error terms may be negative as well as positive;
   @FOR( PERIODS: @FREE( ERROR));

! Exclude meaningless Alphas of zero or one;
    @BND(.01, ALPHA,.9999);

END