Using the Average of Recent Historical Demand to Generate a Forecast

question 49

Multiple Choice

Using the average of recent historical demand to generate a forecast is referred to as what technique?

• A) Simple moving average
• B) Weighted moving average
• C) Exponential smoothing
• D) Linear trend forecast

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Definitions:

Economic Losses

Financial deficits that occur when expenses exceed revenues, or due to lost opportunities, inefficiencies, or unexpected market changes.

Chronic Budget Deficits

A fiscal situation where a government consistently spends more than it receives in revenue over a long period, leading to accumulating debt.

Spending Priorities

The allocation decisions made by an individual, organization, or government regarding where to allocate available financial resources among various competing needs or interests.

Deferred Costs

Expenses that are incurred for an asset that will not be completely consumed in the current period but rather recognized over time.