Hyndman and Koehler Method

The Hyndman and Koehler method, also known as exponential smoothing, is a forecasting technique used to predict future values based on past data. It works by assigning exponentially decreasing weights to older observations, giving more importance to recent data. This approach helps smooth out short-term fluctuations, making it easier to identify underlying trends and seasonal patterns. Commonly applied in business and economics, the method balances responsiveness to recent changes with stability over time, providing accurate, reliable forecasts for planning and decision-making.