The Morgan Company is interested in developing a forecast for next month's sales.It has collected sales data for the past 12 months. After analyzing these data,if the company wishes to use exponential smoothing,it should employ a single smoothing model since there is evidence of a linear trend in the data.

Question

The Morgan Company is interested in developing a forecast for next month's sales.It has collected sales data for the past 12 months.  After analyzing these data,if the company wishes to use exponential smoothing,it should employ a single smoothing model since there is evidence of a linear trend in the data.

Quizplus · Accepted Answer

If there is evidence of a linear trend in the data, a double smoothing model (Holt's linear method) would be more appropriate for forecasting. Exponential smoothing is better suited for data with no trend or a stable trend.

The Morgan Company Is Interested in Developing a Forecast for Next