One technique of forecasting is called the Moving Average.In this method rather than using last years sales as the forecast, ___________.
A) A simple average for the last 2 or 4 years is used
B) A smoothing technique is used to determine the forecast
C) A decomposition of the industry is used to average the sales
D) An average is calculated using the mid-point of the sales trend and then is computed by multiplying it by a beta coefficient to get the next year's forecast
E) None of the above

Question

Quizplus · Accepted Answer

In the Moving Average technique, a simple average for the last 2 or 4 years is used to determine the forecast. This helps in smoothing out any irregularities or fluctuations in the data and provides a more accurate forecast.

One Technique of Forecasting Is Called the Moving Average