Final answer:
Exponential smoothing is a form of weighted averaging used in time series analysis to forecast future values based on historical data.
Step-by-step explanation:
Exponential smoothing is a form of weighted averaging that is used for forecasting in time series analysis. It assigns weights to past observations with the most recent observation receiving the highest weight. This technique is commonly used in business and economics to predict future values based on historical data.
For example, let's say we have sales data for the past few months and we want to forecast the sales for the next month. Exponential smoothing would give more weight to the most recent sales data, reflecting the belief that recent sales are more indicative of future sales.
Therefore, the statement 'Exponential smoothing is a form of weighted averaging' is true.