Which of the Following Is True

question 88

Multiple Choice

Which of the following is true?

• A)In trend analysis, the independent variable is time only if the equation is linear.
• B)The number of time periods in a centred moving average is always even.
• C)If the seasonal index for December sales is 120, this means that December sales tend to be 120% higher than the 'average' month.
• D)The cyclical component of a time series refers to repeating patterns that have a period of a year or less.

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Definitions:

Machine

Equipment or devices designed to perform specific tasks, often used in manufacturing and production processes.

Internal Rate

Commonly denotes the internal rate of return (IRR), the discount rate at which the net present value (NPV) of all cash flows from a specific project is zero.

Cash Operating

The process dealing with the direct cash flows from business operations, emphasizing a company's liquidity in the short term.

Required Rate

The minimum expected return by investors to compensate for the risk of an investment, often used in capital budgeting.