I the Moving Average Method Merely Smooths Out the flUctuations

question 56

Multiple Choice

i. The moving average method merely smooths out the fluctuations in the data.
ii. To apply the moving average method to a time series, the data should follow a linear trend and
Have a definite rhythmic pattern of fluctuations that repeat (say, every three years) .
iii. Sales, production and other economic and business series usually have periods of oscillation that
Are of equal length or identical amplitudes.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Foreign Direct Investment

Investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

Market-Entry Strategies

Plans developed by businesses to enter new markets and establish a presence in them.

Global Sourcing

The purchase of materials or services from around the world for local use.

Licensing/Franchising

A business method where a company (franchisor) allows others (franchisees) to operate a business using its trademark, model, and processes in exchange for a fee.