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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) denote the numbers of weeks over which the moving averages are taken. The actual demand shows a step increase from d1 to d2 at a certain time. Subsequently,
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- neither F1 (t) and F2 (t) will catch up with the value d2
- both sequences F1 (t) and F2 (t) will reach d2 in the same period
- F1 (t) will attain the value d2 before F2 (t)
- F2 (t) will attain the value d2 before F1 (t)
Correct Option: D
Given that, at certain the demand increased from d1 to d2
The weight age of the latest demand should be there face f2 (t) become M2 > M2.
