Which One of the Following Statements About Forecasting Is FALSE

question 145

Multiple Choice

Which one of the following statements about forecasting is FALSE?

• A) You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences.
• B) The weighted moving average method allows forecasters to emphasize recent demand over earlier demand. The forecast will be more responsive to change in the underlying average of the demand series.
• C) The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it.
• D) In exponential smoothing, higher alpha values place greater weight on recent demands in computing the average.

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