Question

The moving averages method refers to a forecasting method that

a. relates a time series to other variables that are believed to explain or cause its behavior.
b. uses regression relationship based on past time series values to predict the future time series values.
c. is used when considerable trend, cyclical, or seasonal effects are present.
d. uses the average of the most recent data values in the time series as the forecast for the next period.

Answer 1

The correct answer is D. uses the average of the most recent data values in the time series as the forecast for the next period.

Step-by-step explanation:

The moving forecasting method is used when someone wants to give more importance to more recent datasets to get the forecast. Each point of a moving average of a time series is the arithmetic mean of a number of consecutive points in the series, where the number of points is chosen in such a way that seasonal and / or irregular effects are eliminated.