The forecasting method that involves using an average of past observations to predict the future (if the forecaster feels that the future is a reflection of some average of past results)is the
A)moving average method.
B)econometric forecasting method.
C)exponential smoothing method.
D)Both A and B
E)Both A and C

Question

Quizplus · Accepted Answer

The moving average method and the exponential smoothing method both involve using past observations to predict the future, with the assumption that future values will reflect some average of past results. The moving average method uses a simple average of past data points, while exponential smoothing assigns exponentially decreasing weights to older observations.

The Forecasting Method That Involves Using an Average of Past