Question: A planner is using a simple moving average forecast to estimate demand. The simple moving average forecast uses the previous 5 time periods as the
A planner is using a simple moving average forecast to estimate demand. The simple moving average forecast uses the previous 5 time periods as the forecast. The planner notices that the demand swings happen much faster than the forecast can react to, and would like to make the forecast more reactive. How can this be done?
Decrease the number of predictive periods
Increase the number of predictive periods
None of these - a moving average cannot be tuned
Use a different constant
why?
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