A time series is believed to consist of random fluctuation, but no evidence of a trend or seasonality is present. Which forecasting tool would be most appropriate?
A) Simple moving average
B) Double exponential smoothing
C) Simple linear regression
D) Seasonal indices

Question

Quizplus · Accepted Answer

Simple moving average is most appropriate for data with random fluctuations and without trend or seasonality, as it smooths out short-term fluctuations and highlights longer-term trends or cycles (if any), which in this case are presumed absent.

A Time Series Is Believed to Consist of Random Fluctuation