Exponential Smoothing Equations

• Smoothing Equations  Ei = W·Yi + W·(1-W)·Yi-1 + W·(1-W)2·Yi-2 + W·(1-W)3·Yi-3 + ... + (1-W)i-1·Y1

= W·Yi + (1 - W)·Ei-1

• Forecasting Equation

  Yi+1 = Ei
  

Ei = Smoothed  value

Yi = Actual value

W = Smoothing  coefficient

^

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