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    Moving Average Approach and Exponential Smoothing approach

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    Explain the difference between the Moving Average approach and Exponential Smoothing approach to forecasting.

    © BrainMass Inc. brainmass.com October 10, 2019, 3:33 am ad1c9bdddf
    https://brainmass.com/economics/microeconomics/moving-average-approach-exponential-smoothing-approach-425073

    Solution Preview

    Forecasting is guessing in advance possible event that may take place in the future. Examples of such forecasting methods are moving averages and exponential smoothing.

    Moving average "is the simplest form of forecasting, very effective when sales are relatively steady over time" (Loma, 2009, p.59).

    Moving average approach to forecasting utilizes the average of the previously occurring data. In utilizing the moving average forecast, computation of the average moves from one period to another. Hence, the term moving average. A ...

    Solution Summary

    This solution shows the difference between the Moving Average approach and Exponential Smoothing approach to forecasting.

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