Moving average forecasting models smooth out fluctuations, Operation Management

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Moving average forecasting models smooth out fluctuations

1. Moving average forecasting models smooth out fluctuations of historic data but may not be the best forecaster of trends in data since the forecast will always lag the trend. True or False?

2. Exponential Smoothing models utilize all historic observations to which the analyst has access, while a two-period moving average model relies on only the data of the past two time periods. True or False?

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Operation Management: Moving average forecasting models smooth out fluctuations

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