a. Which forecasting technique can place the most emphasis on recent values? How does it do this? In your own words, explain adaptive forecasting? What is the purpose of a tracking signal?
b. Explain, in your own words, the meaning of the correlation coefficient. Discuss the meaning of a negative value of the correlation coefficient? What is the difference between a dependent and an independent variable?
c. Give examples of industries that are affected by seasonality. Why would these businesses want to filter out seasonality? Give examples of industries in which demand forecasting is dependent on the demand for other products.