The Following Time-Series Approach to Forecasting Uses Historical Data to Generate

question 15

Multiple Choice

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:

• A)Naïve Forecast
• B)Weighted Moving Average
• C)Simple Moving Average
• D)Exponential Smoothing

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Definitions:

Naive Forecast

A forecasting technique that assumes future values will be the same as past values, often used as a baseline for more complex models.

Time-series Data

Data points collected or recorded at successive points in time, often used to analyze trends, cycles, or patterns.

Seasonal Variation

Periodic fluctuations in data or phenomena that occur at regular intervals within a year due to seasonal factors.

Cycles

Periods or sequences in a system or process that repeat in a regular pattern, such as the phases of economic growth and decline or the operation of machinery.