Explain the difference between the Moving Average and Exponential Smoothing approaches to forecasting
What will be an ideal response?
The Moving Average approach assigns equal weights to each time period from which data are obtained, and drops the oldest time period when a new time period is added in calculating the average value.
The Exponential Smoothing approach assigns different weights to each time period from which data are drawn, with the smallest weight given the oldest time period and the greatest weight to the most recent period (all the weights are fractional, usually employing a geometric progression, and must add up to one).
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Prior to the recession which began in late 2007, the Federal Reserve purchased ________ of the government budget deficit
A) none B) about 50 percent C) a small portion D) all
An effective minimum wage tends to create unemployment among unskilled workers because it
A) reduces the demand for their labor services. B) increases the supply of their labor services. C) reduces the marginal productivity of their labor services. D) reduces the quantity demanded for their labor services while increasing the quantity supplied of their labor services. E) generates all of the above.