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1. You are responsible for forecasting your company\'s revenue for the next 24 m

ID: 2443787 • Letter: 1

Question

1. You are responsible for forecasting your company's revenue for the next 24 months. You have three years of historical monthly data and previous forecasts that indicate the company revenue have no significant seasonality and have grown over that time. Which smoothing forecast method would you apply to the problem?

a)

b)

c)

d)

Double exponential smoothing

2. The problem with using exponential smoothing or other univariate methods to forecast company revenue performance is that it assumes the future is determined only by the past. Company executives and managers inherently do not agree with this assumption.

a)

3 period moving average

b)

12 period moving average

c)

Single exponential smoothing

d)

Double exponential smoothing

2. The problem with using exponential smoothing or other univariate methods to forecast company revenue performance is that it assumes the future is determined only by the past. Company executives and managers inherently do not agree with this assumption.

a) True b False

Explanation / Answer

Answer:

You are responsible for forecasting your company's revenue for the next 24 months. You have three years of historical monthly data and previous forecasts that indicate the company revenue have no significant seasonality and have grown over that time. Which smoothing forecast method would you apply to the problem?

Answer: b) 12 period moving average

as it clearly shows the trends and directions of data. it gives overall view about the data.

The problem with using exponential smoothing or other univariate methods to forecast company revenue performance is that it assumes the future is determined only by the past. Company executives and managers inherently do not agree with this assumption.

Answer: a) True

As they use more effective methods and techniques to analyse the data