In exponential smoothing models,the forecast is based on the level at time t,L_t,which is not observable and can only be estimated.

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Quizplus · Accepted Answer

In exponential smoothing models, the forecast is indeed based on the level at time t, which is an unobservable component that must be estimated using the available data. This estimation process involves using past observations with exponentially decreasing weights.

In Exponential Smoothing Models,the Forecast Is Based on the Level