Which of the following statements comparing the weighted moving average method and the exponential smoothing method is true?
A) Exponential smoothing typically uses less past data.
B) Exponential smoothing is more accurate.
C) For the weighted moving average method, you can use a single weight.
D) More emphasis can be placed on recent values using the weighted moving average.

Question

Quizplus · Accepted Answer

The weighted moving average method allows for more emphasis to be placed on recent values by assigning higher weights to those observations. The exponential smoothing method, on the other hand, typically uses all past data but places less weight on older observations. Therefore, statement D is true while the other statements are not.

Which of the Following Statements Comparing the Weighted Moving Average