Which of the Following Is the Least Useful Time-Series Forecasting

question 9

Multiple Choice

Which of the following is the least useful time-series forecasting model when there is a strong upward trend in the data?

• A)Estimated exponential trend model
• B)A five-period centered moving average
• C)Exponential smoothing with a high α
• D)Regression model with trend and seasonal binaries

---

Definitions:

Normal Goods

Normal goods are goods whose demand increases when consumer income rises, and decreases when consumer income falls, opposite to inferior goods.

Perfect Substitutes

Goods that can completely replace each other in consumption, resulting in consumers being indifferent to which product they consume.

Income Elasticity

A measure of how the demand for a good or service changes with a change in the consumer's income.

Bagels

A type of bread product originating from the Jewish communities in Poland, known for their dense, chewy texture and hole-in-the-center shape.