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? Why? (Ch. 18)

Answer 1

Answer:

weighted moving average

Explanation:

Of all these 4 options, the weighted moving average is the most accurate, as it is possible to place specific weights according to their significance.

The other techniques, such as an average, straight line, or exponential curve, assume things. The weighted average can change to any form.

However, the weighted average can be complicated to use if a long time frame is taken.

Additionally, the consumer will most likely want to adjust the weights as time periods pass. That will contribute to the complexity of applying the methods to a wide range of applications, such as predicting inventory item demand.

Hence, the first option is correct