A forecasting technique that uses an average of previous observations, with each observation being weighted, is which technique?
A) Simple moving average
B) Linear trend forecast
C) Exponential smoothing
D) Weighted moving average

Question

Quizplus · Accepted Answer

The technique described is a weighted moving average, where each observation is given a different weight. Simple moving average uses equal weights for each observation, linear trend forecast involves fitting a straight line to the data, and exponential smoothing involves giving more weight to recent observations.

A Forecasting Technique That Uses an Average of Previous Observations