Double Exponential Smoothing (Browns)

This smoothing method can be used for data which contains linear trend. This method is often called as Brown’s one-parameter linear method.

The following equations are used in double exponential smoothing with Browns method:

Single smoothing statistic equation:

Double smoothing statistic equation:

 

Forecasting value

The procedure to calculate forecasting m forward period with double exponential smoothing with Brown method can be calculated from this equation:

This equation is similar to linear trend method, where:

 

Starting value

The smoothing statistic equation above can be solved if the estimation value for is defined. Starting value is defined as:


We can use linear trend model constant calculated with the least squares estimation method to estimate the coefficient of , and .