What are the main problems with using moving averages

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Explain why most forecasting error measures use either the absolute or the square of the error.

What are the main problems with using moving averages in forecasting?

Explain why, in the exponential smoothing forecasting method, the larger the value of the smoothing constant, a, the better the forecast will be in allowing the user to see rapid changes in the variable of interest.

In using the decomposition method, the forecast based on trend is found using the trend line. How is the seasonal index used to adjust this forecast based on trend?

Reference no: EM132852328

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