Overview for Winters' Method

Use Winters' Method to smooth your data and to provide medium-range forecasts. You can use this procedure when the data have a trend and a seasonality component, with these two components being either additive or multiplicative. Winters' Method calculates dynamic estimates for three components: level, trend, and seasonal.

For example, a budget planner for a local business office uses a Winters' method analysis to predict water and electricity costs for the next three periods.