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:

Markets

Any structure that allows buyers and sellers to exchange any types of goods, services, and information.

Central Planners

Officials or bodies within a government responsible for making decisions about the economy’s production and distribution of goods and services.

Communal Ownership

A system where property and resources are owned collectively by a community or society rather than by individual members or companies.

Opportunity Cost

The price paid by not choosing the second-best option available during decision-making.