Which of the Following Statements Most Accurately Describes the Outcome

question 24

Multiple Choice

Which of the following statements most accurately describes the outcome of using a simple moving average model to forecast demand that has a strong trend?

• A)Using more periods in the moving average calculation will produce better forecasts.
• B)Moving average models require less historical data than exponential smoothing models.
• C)Moving averages must be weighted in order to accurately predict a trend.
• D)Changes in forecasts produced by a moving average model will lag behind changes in demand.

---

Definitions:

Elasticity

Elasticity measures the responsiveness of the quantity demanded or supplied of a good or service to a change in its price or other factors like income.

Resource Demand

The demand for resources (labor, capital, land) that are used to produce goods and services.

Pure Competition

A market structure in which a very large number of firms sells a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition; a market characterized by a very large number of buyers and sellers.

Equivalents

Items or entities that are fundamentally equal in value or function in the context of a specific comparison.