A time series exhibits no trend,no seasonal variation,and no cycle.However,the average measurement is changing slowly over time.The most appropriate way to model this time series would be to use
A)simple exponential smoothing.
B)multiplicative decomposition.
C)a multiple regression model with four predictor variables;one for time and three dummy variables.
D)Holt-Winters' double exponential smoothing model.
E)a no-trend regression model.

Question

Quizplus · Accepted Answer

Simple exponential smoothing is the most appropriate way to model this time series since it does not have any trend, seasonal variation, or cycle. Additionally, the average measurement is slowly changing over time, which can be effectively modeled using simple exponential smoothing. This method assumes that the future forecast is solely based on the most recent data points and gives more weightage to them. Hence, we choose option A.

A Time Series Exhibits No Trend,no Seasonal Variation,and No Cycle