Exponential Smoothing CalculatorFormula

## How to Apply Exponential Smoothing

### Formula

**F(t+1) = alpha * A(t) + (1 - alpha) * F(t)**

Equivalently: F(t+1) = F(t) + alpha * (A(t) - F(t))

Exponential smoothing updates the forecast by adding a fraction (alpha) of the latest forecast error. Alpha near 1 means the forecast reacts quickly to changes; alpha near 0 means it changes slowly. All past data contributes, with exponentially decreasing weights.

Esempio Risolto

Previous forecast = 110, actual = 120, alpha = 0.3.

  1. Error = 120 - 110 = 10
  2. Adjustment = 0.3 * 10 = 3
  3. New forecast = 110 + 3 = 113
  4. Or equivalently: 0.3 * 120 + 0.7 * 110 = 36 + 77 = 113