The forecasting model that makes use of the least squares method is called
A) regression
B) naive approach
C) moving average
D) exponential smoothing

Question

Quizplus · Accepted Answer

The least squares method is a statistical technique used to find the best fit line or curve for a set of data points. Regression analysis is a type of statistical analysis that uses this method to develop a mathematical equation that can be used to predict future values. Therefore, A) regression is the best choice. The other three methods (naive approach, moving average, and exponential smoothing) do not specifically involve the use of the least squares method.

The Forecasting Model That Makes Use of the Least Squares