________ projects the next period's sales by combining an average of past sales and the most recent sales, giving more weight to the latter.
A) Time-series analysis
B) Statistical demand analysis
C) Econometric analysis
D) Cost effectiveness analysis
E) Exponential smoothing

Question

Quizplus · Accepted Answer

Exponential smoothing projects future sales by giving more weight to the most recent data and gradually decreasing the weight of older data over time. This is generally an effective method for forecasting in situations where there is a trend or pattern in the data. Time-series analysis, statistical demand analysis, and econometric analysis may also be used for sales forecasting, but they involve more complex methods and assumptions. Cost effectiveness analysis is not relevant to sales forecasting.

________ Projects the Next Period's Sales by Combining an Average