19. Which one of the following statements is TRUE if you use too many periods fo
ID: 434251 • Letter: 1
Question
19. Which one of the following statements is TRUE if you use too many periods for moving average analysis?
The forecasted demand becomes so smooth that you lose the seasonal pattern.
You failed to use historical data to forecast.
The forecasted demand curve becomes so fluctuated and you could not use it to forecast precisely.
The more the better. Forecasting with lots of periods always outperforms forecasting with short periods.
8.
increase 126 units
decrease 126 units
decrease 117 units
increase 117 units
decrease 9 units.
The forecasted demand becomes so smooth that you lose the seasonal pattern.
You failed to use historical data to forecast.
The forecasted demand curve becomes so fluctuated and you could not use it to forecast precisely.
The more the better. Forecasting with lots of periods always outperforms forecasting with short periods.
Explanation / Answer
19. The forecasted demand becomes so smooth that you lose the seasonal pattern
Moving average analysis is a tool to smoothen the demand in order to find the trend. However, using too many periods will make the forecast so smooth that the seasonal component will be lost.
8. equation of linear model is missing
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