The Data for the Number of Hand-Held Gaming Devices Sold

question 43

Multiple Choice

The data for the number of hand-held gaming devices sold for the past 5 weeks are 15 units, 20 units, 25 units, 30 units, and 17 units respectively. The time series appears to be relatively stable, without trend, seasonal, or cyclical effects; thus, a moving average model would be appropriate. Setting k = 3 the three-period moving average forecast for week 6 is .

• A) 20 units
• B) 24 units
• C) 30 units
• D) 17 units

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Definitions:

Behavioral Economics

An area of economics that examines the influence of psychological, cognitive, emotional, cultural, and social aspects on economic decision-making.

Net Change

The difference between the closing value of a financial instrument on a given day and its closing value on the preceding day.

Stock Market

A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly-held companies take place.

Self-Control Problems

Refers to the difficulty people have in sticking with earlier plans and avoiding suboptimal decisions when finally confronted with a particular decision-making situation. A manifestation of time inconsistency and potentially avoidable by using precommitments.