Multiple choice

A moving average system is used for forecasting weekly demand. F1(t) and F2(t) are sequences of forecasts with parameters m1 and m2, respectively, where m1 and m2(m1 > m2) denotes the numbers of weeks over which the moving averages are taken. The actual demands shows a step increase from d1 to d2 at a certain time. Subsequently,

  1. neither F1(t) nor F2(t) will catch up with the value d2

  2. both sequences F1(t) and F2(t) will reach d2 in the same period

  3. F1(t) will attain the value d2 before F2(t)

  4. F2(t) will attain the value d2 before F1(t)
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D Correct answer
Explanation

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