With the Multiplicative Seasonal Method of Forecasting

question 10

Multiple Choice

With the multiplicative seasonal method of forecasting,

• A) there can only be four seasons in the time series data.
• B) the times series cannot exhibit a trend.
• C) the seasonal amplitude is a constant, regardless of the magnitude of average demand.
• D) seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

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