Might it be OK to use exponential smoothing to forecast 2010 for Bob's data?
A)No, under no circumstances
B)Yes, if you use only the most recent 10 years
C)Yes, if you need a long-term forecast
D)No, since the data appear to be erratic

Question

Might it be OK to use exponential smoothing to forecast 2010 for Bob's data? 
A)No, under no circumstances 
B)Yes, if you use only the most recent 10 years 
C)Yes, if you need a long-term forecast 
D)No, since the data appear to be erratic

Quizplus · Accepted Answer

Exponential smoothing can be used for forecasting if the data exhibit a trend or seasonality pattern. Bob's data appears to show a trend, and using only the most recent 10 years would provide a reasonable short-term forecast. However, it may not be appropriate for long-term forecasting, as the trend could change in the future, and the data may be too erratic to make accurate predictions beyond a certain time frame. Therefore, choice B is the best option.

Might It Be OK to Use Exponential Smoothing to Forecast