Discussion
The time series forecasting method that gives equal weightage to each of the m most recent observations is
Answer: A
The method is the moving average method.
A simple moving average forecasts the next period as the arithmetic mean of the last m observations, so each of those m values gets the same weight, 1/m, and older data get none.
Exponential smoothing, in all its forms (with a linear trend, or triple smoothing for trend and seasonality), gives weights that decline geometrically with the age of the data, the most recent observation weighted most heavily. A Kalman filter is a recursive state estimator whose weighting (the Kalman gain) depends on the noise statistics, not an equal weighting.
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