Which of the following statements regarding time-series methods is FALSE?
A)A naive forecast is identical to a simple moving average of one period.
B)Exponential smoothing with an alpha equal to 1.00 is identical to a naive forecast.
C)A weighted moving average with weights of 0.5 and 0.5 is identical to a simple moving average of two periods.
D)A simple moving average of three periods is identical to exponential smoothing with an alpha equal to 0.33.

Question

Quizplus · Accepted Answer

A simple moving average of three periods is not identical to exponential smoothing with an alpha equal to 0.33. Exponential smoothing gives more weight to recent observations, while a simple moving average gives equal weight to all observations.

Which of the Following Statements Regarding Time-Series Methods Is FALSE