When using the exponentially weighted moving average for purposes of forecasting rather than smoothing,
A) the next smoothed value becomes the forecast.
B) the current smoothed value becomes the forecast.
C) the previous smoothed value becomes the forecast.
D) none of the above

Question

Quizplus · Accepted Answer

When using the exponentially weighted moving average for forecasting, the current smoothed value becomes the forecast for the next period. This is because the weighted average gives more weight to recent observations, making them more relevant for predicting future values.

When Using the Exponentially Weighted Moving Average for Purposes of Forecasting