Might It Be OK to Use Exponential Smoothing to Forecast

question 43

Multiple Choice

Might it be OK to use exponential smoothing to forecast 2010 for Bob's data?

• A)No, under no circumstances
• B)Yes, if you use only the most recent 10 years
• C)Yes, if you need a long-term forecast
• D)No, since the data appear to be erratic

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Definitions:

Confidence Interval

A continuum of estimates, garnered from sample data analysis, presumed likely to contain the concealed value of a population trait.

Population Mean

The average of a set of numerical values of an entire population.

Observations

Data collected during an experiment or survey; each observation represents an individual unit of measured data.

Confidence Levels

The probability or percentage that specifies how confident one can be in the method used to construct a confidence interval estimate of a population parameter.