Is there a name for this smoothing formula?

1. How do you calculate smoothing?
2. Why is smoothing also called exponential smoothing?
3. What is a smoothing method?

How do you calculate smoothing?

The exponential smoothing calculation is as follows: The most recent period's demand multiplied by the smoothing factor. The most recent period's forecast multiplied by (one minus the smoothing factor). S = the smoothing factor represented in decimal form (so 35% would be represented as 0.35).

Why is smoothing also called exponential smoothing?

The name 'exponential smoothing' is attributed to the use of the exponential window function during convolution.

What is a smoothing method?

Smoothing data removes random variation and shows trends and cyclic components. Inherent in the collection of data taken over time is some form of random variation. There exist methods for reducing of canceling the effect due to random variation. An often-used technique in industry is "smoothing".