Exponential Smoothing

Exponential smoothing is a forecasting method used to predict future data points by giving more weight to recent observations while still considering older data. It updates its predictions gradually, balancing past trends with new information. This approach helps identify patterns and adapt to changes over time, making it useful for managing inventory, sales, or other time-based data. The key idea is to smooth out short-term fluctuations and highlight longer-term trends, allowing for more accurate and responsive forecasts.