Question

What production forecasting method would be used if an assumption was made that actual occurrences follow an identifiable pattern overtime?

A. Exponential smoothing
B. Moving average
C. Linear Regression
D. Both A and B

Answer 1

If actual occurrences are assumed to follow an identifiable pattern over time, both exponential smoothing and moving averages are appropriate production forecasting methods to use, with linear regression also being a possibility.

Step-by-step explanation:

The production forecasting method used when an assumption is made that actual occurrences follow an identifiable pattern over time could be exponential smoothing or moving average. Both of these methods rely on past data to predict future outcomes with exponential smoothing giving more weight to recent data. A linear regression could also be employed if the assumption is that the pattern is linear over time. Therefore, the correct answer is D. Both A and B, although C could also be a valid method depending on the specifics of the identifiable pattern.