Use the following to answer the question(s) below.
The time series graph below shows annual sales figures (in thousands of dollars) for a well known department store chain.
-Which model would be most appropriate for forecasting this series?
A) Moving Average using L = 3
B) Single Exponential Smoothing with α = 0.1
C) Quadratic Trend
D) Linear Trend
E) Seasonal Regression

Question

Use the following to answer the question(s) below.
The time series graph below shows annual sales figures (in thousands of dollars) for a well known department store chain. 
-Which model would be most appropriate for forecasting this series?
A) Moving Average using L = 3 
B) Single Exponential Smoothing with α = 0.1 
C) Quadratic Trend 
D) Linear Trend 
E) Seasonal Regression

Quizplus · Accepted Answer

A quadratic trend model is appropriate for forecasting a series that shows a curvilinear pattern, which suggests that the data has a trend that changes direction over time, unlike a linear trend which assumes a constant rate of change.

Use the Following to Answer the Question(s) Below