Economists Want to Forecast the Demand for Automobiles (Cars,SUVs and Light

question 23

Multiple Choice

Economists want to forecast the demand for automobiles (cars,SUVs and light trucks) as a function of gas prices.Historical data has shown that this relationship can be approximated by a straight line.Which forecasting technique is best suited in this situation?

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

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Definitions:

Foreign Competition

The competition that domestic companies face from abroad, often referring to the goods and services offered by companies located in other countries.

Infant Industry Theory

An economic rationale for trade protectionism arguing that emerging domestic industries need protection from international competition until they become mature and competitive.

Protected

Safeguarded from harm or damage through legal, physical, or other means.

Emerging Industries

Sectors or industries that are in the early stages of development and show potential for significant growth and innovation in the future.