Answer (D) is correct . The simple moving-average method is a smoothing technique that uses the experience of the past N periods (through time period t) to forecast a value for the next period. Thus, the average includes each new observation and discards the oldest observation. The forecast formula for the next period (for time period t+1) is the sum of the last N observations divided by N.
Answer (A) is incorrect because Cross-sectional regression analysis examines relationships among large amounts of data (e.g., many or different production methods or locations) at a particular moment in time.
Answer (B) is incorrect because Regression analysis relates the forecast to changes in particular variables.
Answer (C) is incorrect because Under exponential smoothing, each forecast equals the sum of the last observation times the smoothing constant, plus the last forecast times one minus the constant.
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