
Chapter 16
PB
Time Series and Index Numbers
649
given with the three plots, we nd that all the three measures are less for the highest value of
a, that is, for 0.7. Figure 16.18 clearly exhibits that the actual values vary considerably with the
largest value of a seeming to forecast the best.
16.11.1 Using MS Excel for Exponential Smoothing
Click Data/Data Analysis/Exponential Smoothing/OK. The Exponential Smoothing dialog
box as shown in Figure 16.19 will appear on the screen. In this dialog box, place data values in
Input Range. MS Excel computes the smoothed values by using a damping factor de ned as
(1 – exponential smoothing constant). So, ...