Smoothing forecast analysis is a category of business analysis that is applied to company’s projects at different time intervals. It can help companies recognize their strengths and weaknesses. Smoothing Forecast Analysis Template is a type of database that helps calculate time series data as a sequence of observations. The results observed could be a fundamentally haphazard process, or it may be an orderly, but an untidy process.
Smoothing forecast analysis in the simple language is a database which is past the average observations which are weighted equally. On the other hand, exponential smoothing dispenses exponentially decreasing weights over time.
Some facts about the smoothing forecast analysis that can be employed to normal calculations:
- Exponential smoothing which is commonly applied to financial market and economic data, but it can be used with any distinct set of frequent measurements.
- The simplest form of smoothing forecast should be used only for numbers without any systematic trend or seasonal components.
- A time series is an arrangement of observations which are methodical in time. Integral in the collection of data taken over time is some custom of random variation. However, there exist methods for dropping or canceling the effect due to random variation.
The fundamental idea behind smoothing is that each new forecast is obtained in part by moving the prior forecast in a direction that would have improved the old forecast. Smoothing analysis forecast is one of the widely used methods to forecast figures that are literally “smoothing”. These figures, when properly applied, reveal more clearly the underlying trends.
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