Question: Demand has been steadily increasing every day for a number of weeks. Three forecasting methods are being used to forecast daily demand: a naive forecast,
Demand has been steadily increasing every day for a number of weeks. Three forecasting methods are being used to forecast daily demand: a naive forecast, a moving average forecast (n=4 days), and a weighted moving average forecast using (w1 = 0.5, w2 = 0.25, w3 = 0.15, w4 = 0.1; w1 applies to most recent demand). Which of these three forecast methods will result in the higher forecast for the next period?
| a. | Naive Forecast | |
| b. | Moving Average | |
| c. | They will be the same | |
| d. | Weighted Moving Average |
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