Explain the tradeoff between responsivenss and stability in

Explain the trade-off between responsivenss and stability in a forecasting system tha uses time-series data.

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Anticipating the future is no easy task. From astrologers to business managers, we try as best we can to use science and mathematics to demystify the unknown for optimal decision-making. Finance and marketing as well as production and service rely on forecasting to make both long-term and short-term management decisions. You will learn the methods basic to forecasting, become skilled at calculating measurement error, and understand the trade-off between responsiveness and stability in parametric selection.

Define basic concepts of forecasting

Understand how to measure forecast error of a forecast method

Apply the simple moving average model

Apply the exponential smoothing method