Which one of the following statements is TRUE?
A) Bias is always less than MAD.
B) For projections of more stable demand patterns without trends, seasonal influences, or cyclical influences, use larger values of n in the simple moving average approach.
C) Getting a single forecast of 500 units for the month of July is better than getting a forecast that there is a 95 percent chance that demand for July will be between 450 and 550 units.
D) The ideal of zero bias and zero MAD can be accomplished by systematically searching for the best values of the smoothing constants.

Question

Quizplus · Accepted Answer

For stable demand patterns without trends or seasonal influences, using a larger n in the simple moving average approach helps smooth out random fluctuations, providing a more stable forecast.

Which One of the Following Statements Is TRUE