In Forecasting, What Is an Index

question 42

Multiple Choice

In forecasting, what is an index?

• A) It is a single measure that weights multiple indicators and provides a measure of overall expectation.
• B) It is a stream of historical data, such as weekly sales.
• C) It is a time series that does not have trend, seasonal, or cyclical effects but is relatively constant and only exhibits random behavior.
• D) It is a measure that provides a complete forecast.

---

Definitions:

State Inheritance Tax

A tax imposed by some states on individuals who inherit property or money from someone who has died.

Estate Administration

The process of managing and distributing a deceased person's assets according to their will or the laws of intestacy.

Totten Trust

is a type of revocable trust created by depositing funds into a bank account with a designated beneficiary upon the account holder's death.

Settlor

The person who creates a trust by transferring assets into the trust for the benefit of the trust's beneficiaries.