The Table Below Shows the Actual Closing Daily Stock Prices

question 9

Multiple Choice

The table below shows the actual closing daily stock prices for Kyocera Corporation for September 2 through September 5, 2008, as well as 4-day moving average and naïve forecasts.The MAD for the Naïve method is 1.22.What is the MAD for the 4-period MA and how does it compare with the Naïve?

• A)MAD (4-Period MA) is 1.59; the Naïve method is better.
• B)MAD (4-Period MA) is 1.59; the Naïve method is worse.
• C)MAD (4-Period MA) is 1.81; the Naïve method is better.
• D)MAD (4-Period MA) is 1.01; the Naïve method is worse.
• E)MAD (4-Period MA) is 2.87; the Naïve method is worse.

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Definitions:

Profit Centers

Sections of a business that are responsible for generating their own revenue and profit.

Information

Data that has been processed or organized in a way that adds to the knowledge of the person receiving it.

Incentives

A factor, either monetary or non-monetary, that motivates individuals to perform an action.

Division Profits

The earnings generated by a specific division or segment of a larger company, reflecting its financial performance.