Double exponential smoothing is a forecasting technique that extends simple exponential smoothing by adding a second smoothing equation to account for trends in the data. This method uses two parameters: one for the level and another for the trend, allowing it to adapt more effectively to time series data that exhibit a consistent upward or downward trend over time. The technique is particularly useful for producing short-term forecasts while capturing trends, which is crucial in making informed decisions based on historical data.
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