A forecasting method that weights recent observations more heavily is called _____________.
A)Time series analysis
B)First-order autocorrelation
C)Multiplicative decomposition
D)Exponential smoothing

Question

Quizplus · Accepted Answer

Exponential smoothing is a forecasting method that assigns exponentially decreasing weights to past observations, with more weight being given to recent observations. This makes it a good choice for situations where recent data is more relevant to the forecast than data from further back in time. Time series analysis, first-order autocorrelation, and multiplicative decomposition are all techniques that can be used in forecasting, but they do not specifically involve weighting recent observations more heavily.

A Forecasting Method That Weights Recent Observations More Heavily Is