Which of the Following Forecasting Methods Would Be Most Accurate

question 63

Multiple Choice

Which of the following forecasting methods would be most accurate if demand were rapidly decreasing?

• A) 3-month moving average
• B) 6-month moving average
• C) 12-month moving average
• D) Simple mean
• E) Exponential smoothing with  = 0.001

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Definitions:

Consensus

A general agreement or the attainment of a common understanding by all parties involved.

Win-Lose Strategy

A competitive strategy where one party's gain is perceived to be at the other’s expense, common in zero-sum situations.

Time

A measurable period during which actions, processes, or conditions exist or take place.

Limited Period

A specific timeframe with defined beginning and end points.