As the Number of Periods in the Forecast, K, Increases

question 92

Multiple Choice

As the number of periods in the forecast, k, increases

• A) the moving average prediction will be smoother.
• B) it is harder to get a good forecast.
• C) the forecast will respond more quickly to changes in the data.
• D) the moving average will increase in value.

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Definitions:

No-par Common Stock

Shares issued without a par value, allowing the company more flexibility in setting their price.

Paid-in Capital

The total amount of capital that shareholders have contributed to a company in exchange for shares of stock.

Fair Market Value

The price that a willing buyer and a willing seller agree upon when both parties have reasonable knowledge of the relevant facts and neither is under compulsion to buy or sell.