Question

Listat least three common types of quantitative forecasting tools? When is it bestto use each of them?

Answer #1

The most common Type of quantitative Forecasting tools are:

1. Simple Moving Average Method - in this method based on the periods, average is taken in order to determine the forecast of the next period. For example there can be 3 period moving average, 5 period moving average, etc.

2. Weighted Moving Average - in this method based in the periods a weighted average is taken based on the values of the recent periods.

3. Exponential Smoothing - this is the forecasting method which is calculated based on a constant value in order to make the forecast of the current period calculation better.

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