Improved grey prediction model based on exponential grey action quantity

With the passage of time, it has become important to investigate new methods for updating data to better fit the trends of the grey prediction model. The traditional GM(1,1) usually sets the grey action quantity as a constant. Therefore, it cannot effectively fit the dynamic characteristics of the sequence, which results in the grey model having a low precision. The linear grey action quantity model cannot represent the index change law. This paper presents a grey action quantity model, the exponential optimization grey model(EOGM(1,1)), based on the exponential type of grey action quantity; it is constructed based on the exponential characteristics of the grey prediction model. The model can fully reflect the exponential characteristics of the simulation series with time. The exponential sequence has a higher fitting accuracy. The optimized result is verified using a numerical example for the fluctuating sequence and a case study for the index of the tertiary industry's GDP. The results show that the model improves the precision of the grey forecasting model and reduces the prediction error.