Determination of Optimal Smoothing Constants for Exponential Smoothing Method & Holt’s Method

M. Babul Hasan, Md. Nayan Dhali


This paper concentrates on choosing the appropriate smoothing constants for Exponential Smoothing method and Holt’s method. These two
methods are very important quantitative techniques in forecasting. The accuracy of forecasting of these techniques depends on Exponential
smoothing constants. So, choosing an appropriate value of Exponential smoothing constants is very crucial to minimize the error in
forecasting. In this paper, we have showed how to choose optimal smoothing constants of these techniques for a particular problem. We
have demonstrated the techniques by presenting a real life example and calculating corresponding forecast value of these two techniques for
the optimal smoothing constants.


Exponential Smoothing; Holt’s Method; Smoothing Constants; Forecast Error.

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Dhaka University Journal of Science ISSN 1022-2502 (Print) 2408-8528 (Online)