Forecasting with Holt’s Linear Trend Exponential Smoothing | by Egor Howell | Dec, 2022
Compensating for trend in exponential smoothing modelsPhoto by Jeremy Thomas on UnsplashIn my previous post, we introduced the idea of exponential smoothing for building forecasting models. The gist of exponential smoothing is to put more weight on recent observations and less weight, exponentially, on more historical ones.The first model we introduced was simple exponential smoothing. The ‘simple’ part refers to the model not taking into account trend or seasonality, and only forecasting the level. This leads to this…