Question: rewrite for clarity: A moving average forecast is often best for forecasting short-term demand due to its simplicity, efficiency, and effectiveness in smoothing out short-term
rewrite for clarity: A moving average forecast is often best for forecasting short-term demand due to its simplicity, efficiency, and effectiveness in smoothing out short-term fluctuations and highlighting longer-term trends or cycles. Because of these advantages, the moving average model was selected over other forecasting models. Other models might be more accurate for longer-term forecasts or for data with a more complex structure. However, they are also more complex to understand and compute and may not be necessary if the goal is to forecast short-term demand and the data doesn't have a complex structure
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
