The Forecasting Model That Makes Use of the "Least Squares

question 23

Multiple Choice

The forecasting model that makes use of the "least squares" method is ______.

• A) weighted moving average
• B) exponential smoothing
• C) moving average
• D) regression

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Definitions:

Market Rate

The current interest rate offered in the market for instruments with similar risk and maturity levels.

Present Value Factor

A financial calculation used to determine the present value of a sum of money to be received in the future by accounting for time value of money.

Issue Price

The price at which new shares are offered to the public by a corporation during an issuance.

Effective-interest Amortization

A method of amortizing the premium or discount on bonds payable that reflects the periodic interest expense based on the bond's carrying value.