Which of the Following Methods Should Not Be Used for Short-Term

question 25

Multiple Choice

Which of the following methods should not be used for short-term forecasts into the future?

• A) exponential smoothing
• B) moving averages
• C) linear trend model
• D) autoregressive modeling

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Definitions:

Probability

The measure of likelihood that an event will occur, expressed as a number between 0 and 1.

Random Variable

A variable whose values depend on outcomes of a random phenomenon. It can be discrete or continuous.

Standard Deviation

A metric that quantifies the spread or variation of a dataset in comparison to its average value.

Normal Model

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.