Exponential smoothing is a widely used technique for short-run forecasting by business forecasters. It utilizes a weighted average of past data as the basis for a forecast, giving heavier weight to more recent information and smaller weights to older observations, reflecting the idea that the future is more influenced by the recent past than distant past.
A financial projection model that predicts sharply increasing earnings following a period of modest growth, visually resembling a hockey stick when plotted on a graph.
