The forecasting method that is appropriate when the time series has no significant trend, cyclical, or seasonal effects is
A) moving averages approach.
B) decomposition model.
C) simple linear regression.
D) qualitative forecasting method.

Question

The forecasting method that is appropriate when the time series has no significant trend, cyclical, or seasonal effects is​
A) moving averages approach.
B) decomposition model.
C) ​simple linear regression.
D) ​qualitative forecasting method.

Quizplus · Accepted Answer

The moving averages approach is most appropriate when the time series data does not exhibit significant trend, cyclical, or seasonal effects. This is because the moving averages approach is used to smooth out random fluctuations in the data and can be used to identify patterns in the data when the underlying data is relatively stable. Therefore, for data that is relatively stable and does not exhibit significant trends or seasonal effects, the moving averages approach is the most appropriate method of forecasting.

The Forecasting Method That Is Appropriate When the Time Series