Yes, it is possible to use the simple exponential smoothing technique to construct a forecasting model assuming the data set remains stationary in the time series. Simple exponential smoothing is particularly useful for forecasting in situations where the underlying data is stationary and does not contain any trend, seasonal or cyclical patterns. It employs a weighted average approach, where more weight is given to more recent observations, and less weight is given to older observations. This technique works well for making short-term forecasts based on recent data, assuming the data is stationary.
Asked: 2023-05-31 07:15:46 +0000
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Last updated: May 31 '23