What Is Exponential Smoothing?
Exponential smoothing is a time series forecasting method that is used to make predictions based on historical data. It assigns exponentially decreasing weights to past observations, with more recent observations receiving higher weights.
Exponential Smoothing Forecasting depends on a weighted average of the past observations making predictions for future points of data.
The exponential smoothing method formula for simple exponential smoothing (SES), which is one of the most basic forms of exponential smoothing, is as follows: