Question

From the choice of simple moving average, weighted moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate?

Answer 1

Answer:

Exponential Smoothing.

Explanation:

This is said to be so because, in exponential smoothing, the recent past is often the best indicator for future performance.

According to research and analytical studies, the reality of exponential smoothing is far less dramatic and far less traumatic. The truth is, exponential smoothing is a very simple calculation that accomplishes a rather simple task. It just has a complicated name because what technically happens as a result of this simple calculation is actually a little complicated.

It is also noted that understand it helps to start with the general concept of “smoothing” and a couple of other common methods used to achieve smoothing.