Lab No.

3
Title: To Solve numerical on Exponential Smoothing
Using simple Excel
Introduction:
Exponential smoothing is a rule of thumb technique for smoothing time series data, particularly for recursively
applying as many as three low pass filters with exponential window functions. Such techniques have broad
application that is not intended to be strictly accurate or reliable for every situation. It is an easily learned and
easily applied procedure for approximately calculating or recalling some value, or for making some
determination based on prior assumptions by the user, such as seasonality. Like any application of repeated
low-pass filtering, the observed phenomenon may be an essentially random process, or it may be an orderly,
but noisy, process. Whereas in the simple moving average the past observations are weighted equally,
exponential window function assign exponentially decreasing weights over time. The use of three filters is based
on empirical evidence and broad application.

Objective:
The objective of this lab is solve numerical on Exponential Smoothing using simple excel and compare result of
this method to other previous methods as moving average and weighted moving average.

Procedure: Here we solve three example on Exponential smoothing using Simple excel
1. First open excel worksheet then put data of given numerical as
2. Now enter formula to exponential smoothing forecast values

3. Then apply to find all exponential smoothing forecast values and get required result

4. Now draw graph for obtained data as given below

Example No. 2
1. First of all entered data given numerical as

2. Now entered formula to find exponential smoothing values

3. Then apply to all cells where required to find values and got result
4. Finally draw graph for obtained result

Example No. 3
1. First of all entered data given numerical as

2. Now entered formula to find exponential smoothing values

3. Then apply to all cells where required to find values and got result

4. Finally draw graph for obtained result

Conclusion:
It is concluded that this method profitable than other two methods because this method provide result with
trend so it means that minimize the trend in data.

Summary:
In this lab numerical is solved on exponential smoothing forecast and here first of all exponential smoothing
in introduced that Exponential smoothing is a rule of thumb technique for smoothing time series data,
particularly for recursively applying as many as three low pass filters with exponential window functions.
Such techniques have broad application that is not intended to be strictly accurate or reliable for every
situation. Then solved three numerical on exponential smoothing and got required results and concluded
that its provide result with very minimum trend.