BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is used when considerable trend, cyclical, or seasonal effects are present
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uses regression relationship based on past time series values to predict the future time series values
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relates a time series to other variables that are believed to explain or cause its behavior
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uses the average of the most recent data values in the time series as the forecast for the next period
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Detailed explanation-1: -The moving average method uses the average of the most recent n data values in the time series as the forecast for the next period. Note that the n past observations are equally weighted. Issues with moving average forecast: All n past observations treated equally.
Detailed explanation-2: -A forecasting technique referred to as moving averages uses the average or mean of the most recent n periods to forecast the next value for time series data. With a three-period moving average, the most recent three periods of data are used in the forecast computation.
Detailed explanation-3: -A moving average is a technique that calculates the overall trend in a data set. In operations management, the data set is sales volume from historical data of the company. This technique is very useful for forecasting short-term trends. It is simply the average of a select set of time periods.
Detailed explanation-4: -The method that uses the average of the most recent k data values in the time series as the forecast for the next period is called: weighted moving averages.