Averaging forecasting techniques are useful for:
A)distinguishing between random and non-random variations
B)forecasting cyclical time series
C)smoothing out fluctuations in data
D)forecasting seasonal indexes
E)identifying variables in the demand

Question

Quizplus · Accepted Answer

Averaging techniques involve calculating the mean of several recent data points to smooth out fluctuations in data. This technique is effective for identifying trends in data without being affected by random variations or outliers. However, it is not specifically designed for forecasting cyclical or seasonal time series, nor does it identify variables in demand.

Averaging Forecasting Techniques Are Useful For