When exponential smoothing is used for forecasting,the forecast will tend to be too high for time series that are increasing (positive trend)and too low for time series that are decreasing (negative trend).

Question

Quizplus · Accepted Answer

Exponential smoothing primarily focuses on recent observations for forecasting, making it less sensitive to trends. Therefore, it may not accurately capture consistent upward or downward trends without adjustments, rather than systematically forecasting too high or too low based on the trend direction.

When Exponential Smoothing Is Used for Forecasting,the Forecast Will Tend