A method that uses a weighted average of past values for arriving at smoothed time series values is known as
A)a smoothing average
B)a moving average
C)an exponential average
D)an exponential smoothing

Question

Quizplus · Accepted Answer

An exponential smoothing method uses a weighted average of past values, giving exponentially decreasing weights as the observations get older. This approach is effective for dealing with short-term trends and seasonality.

A Method That Uses a Weighted Average of Past Values