A counseling service records the number of calls to their hotline for the last year.Based on MAD,which of these models does the best job of forecasting?
A) A simple moving average of three periods
B) A simple moving average of five periods
C) A weighted moving average of .7, .2, .1
D) A weighted moving average of .5, .2, .2, .1

Question

A counseling service records the number of calls to their hotline for the last year.Based on MAD,which of these models does the best job of forecasting? 
A) A simple moving average of three periods 
B) A simple moving average of five periods 
C) A weighted moving average of .7, .2, .1 
D) A weighted moving average of .5, .2, .2, .1

Quizplus · Accepted Answer

The best choice is the weighted moving average of .7, .2, .1. This is because the weighted moving average takes into account the past data points, with a greater emphasis on the more recent data points. This enables the model to better capture any trends or patterns in the data. Additionally, using a smaller number of weights (compared to option D) helps to reduce the complexity of the model, making it easier to interpret and implement. Finally, the choice of weights (.7, .2, .1) appears to be well-suited to the specific data set, as it is likely based on some analysis or experimentation.

A Counseling Service Records the Number of Calls to Their