Which One of the Following Statements Is TRUE

question 181

Multiple Choice

Which one of the following statements is TRUE?

• A) The ideal of zero bias and zero MAD can be accomplished by systematically searching for the best values of the smoothing constants.
• B) Bias is always less than MAD.
• C) For projections of more stable demand patterns without trends, seasonal influences, or cyclical influences, use larger values of n in the simple moving average approach.
• D) Getting a single forecast of 500 units for the month of July is better than getting a forecast that there is a 95 percent chance that demand for July will be between 450 and 550 units.

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Definitions:

Operating Activities

Activities that are directly related to the primary operations of a company, such as manufacturing, distributing, marketing, and selling a product or service.

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Dividend Expense

Typically, this is a misnomer as dividends are not expensed but are distributions of earnings to shareholders from the retained earnings of a company.