If you felt that recent demand trends were more significant, and thus should be emphasized more in formulating a forecast, then in forecasting demand for the upcoming demand period, you would probably favor using a simple moving average over the conventional weighted moving average. True / False.

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Business

Brenda Gillespie

3 June, 02:42

If you felt that recent demand trends were more significant, and thus should be emphasized more in formulating a forecast, then in forecasting demand for the upcoming demand period, you would probably favor using a simple moving average over the conventional weighted moving average. True / False.

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Answers (1)

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Isla Booth · Answer 1

False

Explanation:

Forecasting demand is a practice of using historical data about demand to predict likely future demands of certain goods and services.

The simple moving average as the name implies uses the average overall trend in determining the forecasted value. It does not emphasize on recent demand trends.

The conventional weighted moving average emphasizes more on recent demand trend by selecting demands data that are close to the period being forecasted