The Moving Averages Method Refers to a Forecasting Method That

question 29

Multiple Choice

The moving averages method refers to a forecasting method that

• A)is used when considerable trend, cyclical, or seasonal effects are present.
• B)uses regression relationship based on past time series values to predict the future time series values.
• C)relates a time series to other variables that are believed to explain or cause its behavior.
• D)uses the average of the most recent data values in the time series as the forecast for the next period.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Information Content Effect

Refers to how a company's stock price reacts to the announcement of financial information, indicating the market's response based on the news' perceived value.

Dividend Payout

Dividend Payout refers to the proportion of earnings that a company distributes to its shareholders as dividends.

NPV Projects

Projects evaluated using Net Present Value, a method to calculate the profitability by comparing the present value of cash inflows with the present value of cash outflows over time.