When do I use simple exponential smoothing and what is the math behind it?

Question

I have a small confusion. When exactly am I suppossed to use simple exponential smoothing? Also, can you explain the math behind it, in brief?

Thank you so much.

Answer 1

Hey @Ruth, you can use this model when your dataset has fewer data points, when you have irregular data and no seasonality or trend.

Just keep in mind that SES only has one component called level. It is a weighted average of the previous level