If a time-series has exactly the same distribution for each and every time period, then the averaging forecasting method provides the best estimate of the mean.

Question

Quizplus · Accepted Answer

If the time-series has the same distribution for each time period, then averaging will provide the best estimate of the mean as it is a stationary series. However, if the distribution changes over time, then other forecasting methods like exponential smoothing or ARIMA models may provide better estimates.

If a Time-Series Has Exactly the Same Distribution for Each