Exponential smoothing is a widely used technique for short-run forecasting by business forecasters. It utilizes a weighted average of past data as the basis for a forecast, giving heavier weight to more recent information and smaller weights to older observations, reflecting the idea that the future is more influenced by the recent past than distant past.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.