A Firm Uses Trend Projection and Seasonal Factors to Simulate $\begin{array}{llcc}0&1&1&2&2&0&1&1&2&3&2&1&2&1&2&2&1&2&3&1&2&2&2&0&3&1&0&2&1&2&1\end{array}$

question 113

Multiple Choice

A firm uses trend projection and seasonal factors to simulate sales for a given time period. It assigns "0" if sales fall, "1" if sales are steady, "2" if sales rise moderately, and "3" if sales rise a lot.
The simulator generates the following output. $\begin{array}{llcc}0&1&1&2&2&0&1&1&2&3&2&1&2&1&2&2&1&2&3&1&2&2&2&0&3&1&0&2&1&2&1\end{array}$

Estimate the probability that sales will rise at least moderately.

• A) 0.452
• B) 0.516
• C) 0.613
• D) 0.512

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Definitions:

Malignancies

The presence of cancerous cells that have the ability to invade and destroy healthy tissue.

Negative Tendency

The inclination towards pessimistic or adverse thoughts, attitudes, or outcomes.

Adaptive Tendency

The innate or learned ability to change or adjust one's behavior or thinking in response to changing circumstances or environments.

Neuroses

A mental health condition characterized by emotional distress but not by gross distortion of reality.