An example of this could be ice cream sales presented in monthly data. ![]() In many business scenarios there is a seasonality pattern that we would like to take into account in the forecast. The main advantages of using the ETS method are the ability to detect seasonality patterns and confidence intervals. Exponential Smoothing methods are a popular way to forecast and are among the leading methods that have become industry standards. The new functionality in Excel 2016 utilizes another algorithm, called Exponential Smoothing or ETS. Before Excel 2016, many used the FORECAST() sheet function, which performs a linear forecast or extended trendlines in chart properties to extrapolate forward. There are many ways to generate a forecast for your historical data. Using Exponential Smoothing for forecasting Let’s take a closer look at some of the capabilities that come with these new features, including how to detect seasonality, understand the level of confidence in the prediction, and create the forecast in one-click. In Excel 2016, new forecasting sheet functions and one-click forecasting helps you to explain the data and understand future trends. Often we use Excel to analyze time-based series data-like sales, server utilization or inventory data-to find recurring seasonality patterns and trends. Well, it just got a lot easier with Excel’s one-click forecasting. “It is difficult to make predictions, especially about the future,” said Danish physicist, Niels Bohr.
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