Averaging forecasting techniques are useful for:
I.distinguishing between random and non-random variations
II.smoothing out fluctuations in data
III.forecasting cyclical time series
A) I only
B) I and II only
C) II only
D) II and III only
E) I, II, and III

Question

Quizplus · Accepted Answer

Averaging forecasting techniques are primarily used to smooth out fluctuations in data (II) by averaging out the random variations, but they do not distinguish between random and non-random variations (I) or forecast cyclical time series (III).

Averaging Forecasting Techniques Are Useful For