If Brandon Edward were working to develop a forecast using a moving averages approach, but he noticed a detectable trend in the historical data, he should
A) use weights to place more emphasis on recent data
B) use weights to minimize the importance of the trend
C) change to a naïve approach
D) use a simple moving average
E) change to a qualitative approach

Question

Quizplus · Accepted Answer

When there is a detectable trend in historical data, a simple moving average approach may not accurately reflect the pattern. Instead, using weighted moving averages that place more emphasis on recent data may be more appropriate. Additionally, a naïve approach or a qualitative approach may not adequately account for the trend in the data. Therefore, option A is the most appropriate choice.

If Brandon Edward Were Working to Develop a Forecast Using