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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