exponential smoothing


exponential smoothing

[‚ek·spə′nen·chəl ′smüth·iŋ] (industrial engineering) A mathematical-statistical method of forecasting used in industrial engineering which assumes that demand for the following period is some weighted average of the demands for the past periods.

exponential smoothing

A widely used technique in forecasting trends, seasonality and level change. Works well with data that has a lot of randomness.