mkingopng / electricity_demand_forecasting

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Exponential smoothing #16

Open mkingopng opened 2 months ago

mkingopng commented 2 months ago

Exponential smoothing refers to the use of an exponentially weighted moving average (EWMA) to “smooth” a time series.

Holt Winters (aka triple exponential smoothing) is an old school work-horse for time series dating back to the 1950s. Its simple but it works Its a sensible place to start. There are 3 components:

  1. value,
  2. trend, and
  3. seasonality

The model predicts a current or future value by computing the combined effects of these three influences.