A forecast based on the previous forecast plus a percentage of the forecast error is:
A)a naive forecast.
B)a simple moving average forecast.
C)a centred moving average forecast.
D)an exponentially smoothed forecast.
E)an associative forecast.

Question

Quizplus · Accepted Answer

This is an exponentially smoothed forecast, where the previous forecast is adjusted based on a percentage of the difference between the forecast and actual values. This approach places more weight on recent data while still reflecting past trends.

A Forecast Based on the Previous Forecast Plus a Percentage