Asked by Ambreen Chattha on Jul 25, 2024

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The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate

A) qualitative methods.
B) adaptive smoothing.
C) slope.
D) bias.
E) trend projection.

Adaptive Smoothing

An approach to exponential smoothing forecasting in which the smoothing constant is automatically changed to keep errors to a minimum.

Bias

A forecast that is consistently higher or consistently lower than actual values of a time series.

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Nereesa HenryJul 27, 2024
Final Answer :
D
Explanation :
The forecasts consistently underestimate the actual sales, indicating a systematic deviation from the true values, which is referred to as bias.