Question

The forecasting method that is appropriate when the time series has no significant trend, cyclical, or seasonal effect is

Answer 1

The forecasting method that is appropriate when the time series has no significant trend, cyclical, or seasonal effect is averages.

Answer 2

The forecasting method that is appropriate when the time series has no significant trend, cyclical, or seasonal effect is moving averages.

• A statistical technique for predicting long-term trends is the moving average.
• The method illustrates moving the range while averaging a set of numbers in a specific range.
• Short-term variations and long-term trends are masked by the moving average approach when applied to time-series data.
• Moving average is used in both financial applications and scientific & engineering applications.
• When there is a minor seasonality or trend but steady demand, the moving average is used to forecast the availability of goods or commodities.