Martin is handed quarterly sales data from a small subsidiary. Prior to creating a strategy, he wants to forecast the Q4 results to have an idea of the full year potential sales. What is the most popular technique Martin can use to compute the Q4 sales estimate?
A) quadratic trend model
B) 3-period moving average technique
C) polynomial trend model
D) exponential smoothing model

Question

Quizplus · Accepted Answer

The 3-period moving average technique is a simple and popular method for forecasting future data points by averaging the sales data from the previous three quarters.

Martin Is Handed Quarterly Sales Data from a Small Subsidiary