GATE 2024 PI – Question 25

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

Which forecasting method needs the least historical data?

Econometric forecasting
Linear regression
ARIMA
Simple exponential smoothing

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Show answer and explanation

Correct answer: (D) Simple exponential smoothing

Explanation

Simple exponential smoothing updates a single running forecast using the latest observation: $F_{t+1}=\alpha A_t+(1-\alpha)F_t$. It does not need the multiple variables or longer history used in the other listed models. **D**.

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