After an analysis on the disadvantages of Exponential Smoothing Algorithm(ESA) in the selection of smoothing coefficient from theoretical and empirical perspectives
the author has proposed a new method for selecting smoothing coefficient by ESA to smooth and forecast data.The value of smoothing coefficient has a significant impact on the accuracy of data smoothing and data forecasting: when the ESA is used to smooth data
the smoothing coefficient needs to be smaller.When it is used to forecast data
the smoothing coefficient needs to be greater
so as to improve the accuracy of data smoothing and data forecasting.