Which of the following statements most accurately describes the outcome of using a simple moving average model to forecast demand that has a strong trend?
A. Using more periods in the moving average calculation will produce better forecasts.
B. Moving average models require less historical data than exponential smoothing models.
C. Moving averages must be weighted in order to accurately predict a trend.
D. Changes in forecasts produced by a moving average model will lag behind changes in demand.
D. Changes in forecasts produced by a moving average model will lag behind changes in demand.
Explanation:
Moving average models are purely based on history. They include no trend adjustment (prediction) so they will always lag behind changes in demand, though using fewer periods in the moving average calculation will decrease the amount of the lag.
You might also like to view...
Canada has a poor record when it comes to white collar crime because
A) there is no national securities regulator in Canada only many provincial regulators B) the RCMP lacks the money and manpower to prosecute many major cases C) it is difficult to meet the criminal burden of proof to get a conviction D) the risk of being caught is worth the reward of large illegal profits E) all of the above
Intermediaries must perform three basic functions. Name these functions, and describe the activities involved in each function.
What will be an ideal response?
Why do so many programs still have help files and configuration files written with the .txt extension?
What will be an ideal response?
A(n) ____________________ combines aspects of computer, information, network, and software architecture
Fill in the blank(s) with correct word