Question

Your business demand data show trend but not seasonality. You want to use either linear regression or exponential smoothing with trend. How would you decide which one to use?

Answer 1

Answer :- Trend means the increasing and decreasing Value in the series

Seasonality means the repeating short term cycle in the series

Exponential smoothing forcast used for time series forcasting based on historical with seasonal or other cycles.

But in this above question the business demand data shows trend but not seasonality means a linear regression forecasting method is used because in this the future Value is predicted without seasonality and other cycles. It also suited for small and simple data sets that do not have enough data to detect seasonality.