Which Time-Series Model Below Assumes That Demand in the Next

question 115

Multiple Choice

Which time-series model below assumes that demand in the next period will be equal to the most recent period's forecast?

• A) naive approach
• B) moving average approach
• C) weighted moving average approach
• D) exponential smoothing approach with α = 0
• E) trend projection

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Definitions:

Optimum

The most favorable condition or highest achievable level of efficiency under the given circumstances.

Indifference Curves

Graphical representations in economics that show combinations of goods among which a consumer is indifferent.

Upward-sloping

A term used in economics to describe a curve that represents an increase in one variable as another variable increases, often used in the context of supply curves.

Preferences

Individual choices or tastes regarding various bundles of goods and services.