When a forecaster uses the ______________ method,she or he assumes that the time series components are changing slowly over time.
A)Time series regression
B)Exponential smoothing
C)Box-Jenkins
D)Multiplicative decomposition

Question

Quizplus · Accepted Answer

Exponential smoothing is a method where the forecast for the next period is based on the weighted average of past observations, with more weight given to more recent observations. This method assumes that the time series components are changing slowly over time, which makes it a good choice for forecasting data that is not subject to sudden or drastic changes.

When a Forecaster Uses the ______________ Method,she or He Assumes