The simple moving average forecasting method uses fewer periods of data than the simple mean forecasting method does.

Question

Quizplus · Accepted Answer

The simple moving average forecasting method only considers a specific number of periods of data for the calculation of the average, while the simple mean forecasting method considers all available periods of data. Therefore, the simple moving average forecasting method uses fewer periods of data than the simple mean forecasting method.

The Simple Moving Average Forecasting Method Uses Fewer Periods of Data