Exponential Smoothing Forecast Excel. Lt α yt st m 1 α lt 1 tt 1. Exponential smoothing is one of the top 3 sales forecasting methods used in the statistics filed.
Exponential smoothing is used to forecast the business volume for taking appropriate decisions. Exponential smoothing is another time series forecasting method which assigns exponentially decreasing weights on older observations. To access exponential smoothing in excel go to the data menu tab and from the data analysis option choose exponential smoothing.
To access exponential smoothing in excel go to the data menu tab and from the data analysis option choose exponential smoothing.
Click in the damping factor box and type 0 9. In this example i m going to use sales data from the last 12 months to forecast revenue for january q1 or month 13 in this case. Exponential smoothing forecasting in excel is based on the aaa version additive error additive trend and additive seasonality of the exponential triple smoothing ets algorithm which smoothes out minor deviations in past data trends by detecting seasonality patterns and confidence intervals. Exponential smoothing is another time series forecasting method which assigns exponentially decreasing weights on older observations.
