Forecasting using the T-method

The T-method is a technique developed by Genichi Taguchi to calculate an overall prediction based on the signal-to-noise ratio without the use of Gram-Schmidt orthogonalization. The Taguchi Methods, also known as robust design principles, is used to determine the optimal levels of control factors through planning and conducting experiments, and evaluating their results. The primary goal of Robust Design is to minimize variance in the presence of noise factors to achieve a robust process. T-Method is one of the techniques evolved from Taguchi Methods. This thesis illustrates the use of the T-method and outlines it steps using four forecasting case studies from various areas with a univariate response to illustrate the technique. The methodology used to forecast in the case study is explained and the results obtained are demonstrated. In addition, a basic comparison with the Mahalanobis-Taguchi system is provided --Abstract, page iii