When using exponential smoothing, there is no forecasting error for Period 1 because we arbitrarily assign F1 = A1 to start the forecasting technique.

Question

Quizplus · Accepted Answer

In exponential smoothing, the forecast for the first period (F1) is typically set equal to the actual value of the first period (A1), so there is no forecasting error for Period 1 as the forecast exactly matches the actual data.

When Using Exponential Smoothing, There Is No Forecasting Error for Period