Which one of the following statements about forecasting is FALSE?
A) 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.
B) 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.
C) In exponential smoothing, higher alpha values place greater weight on recent demands in computing the average.
D) 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.

Question

Quizplus · Accepted Answer

The simple moving average method is not suitable for time series with a pronounced trend and seasonal influences, as it does not account for these patterns.

Which One of the Following Statements About Forecasting Is FALSE