The moving averages method refers to a forecasting method that
A)is used when considerable trend, cyclical, or seasonal effects are present.
B)uses regression relationship based on past time series values to predict the future time series values.
C)relates a time series to other variables that are believed to explain or cause its behavior.
D)uses the average of the most recent data values in the time series as the forecast for the next period.

Question

Quizplus · Accepted Answer

The moving averages method involves calculating the average of the most recent data values in the time series and using this as the forecast for the next period. This method does not use regression or other explanatory variables, and is typically used for time series with no or little trend, cyclical, or seasonal effects.

The Moving Averages Method Refers to a Forecasting Method That