When using the exponentially weighted moving average for purposes of forecasting rather than smoothing,
A)the previous smoothed value becomes the forecast.
B)the current smoothed value becomes the forecast.
C)the next smoothed value becomes the forecast.
D)None of the above.

Question

Quizplus · Accepted Answer

When using the exponentially weighted moving average for forecasting, the current smoothed value becomes the forecast. This is because the weighted average is based on past observations and is adjusted to reflect the most recent data point. Therefore, the current smoothed value is the best estimate of the future value.

When Using the Exponentially Weighted Moving Average for Purposes of Forecasting