Exponential smoothing

Updated: Aug 20, 2021

A forecast based on the weighted average of the past values of the variable, in which the weights assigned to the past values decline exponentially with the lag length. This procedure is also used for data smoothing and is a version of the weighted moving average technique.

Reference: Oxford Press Dictonary of Economics, 5th edt.

Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.