A Paso Robles wine producer wanted to forecast the cases of merlot wine sold. The number of cases of merlot wine sold in a 28-year period was collected. Which of the following would be the most appropriate analysis to perform?
A) least-squares forecasting with monthly or quarterly data
B) Laspeyres price index modeling
C) the Marascuilo procedure
D) exponential smoothing modeling

Question

Quizplus · Accepted Answer

The best choice for forecasting the cases of merlot wine sold over a 28-year period would be exponential smoothing modeling, as it is a commonly used method for time series forecasting that takes into account previous data points to make predictions about future trends. Least-squares forecasting with monthly or quarterly data would not be appropriate for this type of analysis, as the data was collected over a 28-year period, which is too long of a time frame to break down into monthly or quarterly data points. Laspeyres price index modeling and the Marascuilo procedure are also not applicable to this situation, as they relate to different types of analyses (price indexing and significance testing, respectively).

A Paso Robles Wine Producer Wanted to Forecast the Cases