A Company Wants to Forecast Demand Using the Simple Moving

question 55

Multiple Choice

A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values , which of the following is the simple moving average forecast for year 2020?

• A) 100.5
• B) 122.5
• C) 133.3
• D) 135.6
• E) 139.3

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Definitions:

Linear Regression Equation

An equation used to predict a dependent variable based on one or more independent variables, representing the line of best fit.

Y-Intercept

The point at which a line crosses the y-axis on a graph.

X-Intercept

The point at which a line or curve on a graph crosses the x-axis, indicating a value of x where the function equals zero.

Slope

The slope refers to the steepness or incline of a line on a graph, representing the rate of change between variables.