The GATE Grind

GATE 2020 PI – Question 29

Operations Research and Operations Management · Production Control · 1 mark · Multiple choice

Which is a causal forecasting method?

  1. Naive approach
  2. Moving average
  3. Exponential smoothing
  4. Linear regression

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Correct answer: (D) Linear regression

Explanation

Causal forecasting links the forecast variable to explanatory variables. Regression explicitly models that relationship, D. The naive, moving-average and basic exponential-smoothing methods forecast from the series’ own past behaviour rather than an external causal predictor.

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