When there is a significant upward or downward trend in the data, the two of the best forecasting models to use are adjusted exponential smoothing and linear regression.

Question

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Adjusted exponential smoothing and linear regression are both effective models for forecasting when there is a clear trend in the data. Adjusted exponential smoothing is particularly useful for short-term forecasts, while linear regression can be used for both short- and long-term forecasts.

When There Is a Significant Upward or Downward Trend in the Data