- 4 Marks
QT – May 2019 – L1 – Q5a – Forecasting
Explain the concepts of moving averages and exponential smoothing in time series forecasting.
Question
The objective of smoothing methods is to smooth out the random variations due to irregular components of the time series and provide an overall impression of the pattern of movement in the data over time.
Required:
Explain the following smoothing methods:
i) Moving averages (2 marks)
ii) Exponential smoothing (2 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Exponential Smoothing, Forecasting, Moving Averages, Smoothing Methods, Time series
- Level: Level 1
- Topic: Forecasting
- Series: MAY 2019