A Six-Month Moving Average Forecast Is Generally Better Than a Three-Month

question 50

Multiple Choice

A six-month moving average forecast is generally better than a three-month moving average forecast if demand:

• A) is rather stable.
• B) has been changing due to recent promotional efforts.
• C) follows a downward trend.
• D) exceeds one million units per year.
• E) follows an upward trend.

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Definitions:

Vertical Merger

A business strategy where a company merges with another company that operates in the same industry but at a different stage of the production process.

Supplier-Customer Relationships

The interactions and transactions between a provider of goods or services and the entity that purchases them.

Friendly Merger

A merger agreed upon by all parties involved, where both companies' leadership are willing participants in the negotiation process.

Target's Management

The executive and leadership team of a company that is being considered for acquisition or merger.