#m249 #mathematics #open-university #statistics #time-series
Whereas in the
simple moving average the past observations are weighted equally, exponential smoothing assigns exponentially decreasing weights over time.
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Exponential smoothing - Wikipedia, the free encyclopediaeither to produce smoothed data for presentation, or to make forecasts. The time series data themselves are a sequence of observations. The observed phenomenon may be an essentially random process, or it may be an orderly, but noisy, process. <span>Whereas in the simple moving average the past observations are weighted equally, exponential smoothing assigns exponentially decreasing weights over time.
Exponential smoothing is commonly applied to financial market and economic data, but it can be used with any discrete set of repeated measurements. The simplest form of exponential smoot Summary
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