Trend Forecasting Methods Including the Percentage Rate of Change and the Unit

question 43

Multiple Choice

Trend forecasting methods including the percentage rate of change and the unit rate of change:

• A) are widely used by managers.
• B) can produce large forecasting errors when sales change direction.
• C) are relatively easy to use.
• D) are often combined to improve moving average and exponential smoothing forecasts.
• E) All of the above.

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Definitions:

Spider

A nickname for SPDR (Standard & Poor's Depositary Receipts), a type of exchange-traded fund that mimics the performance of the S&P 500.

12b-1 Charges

Fees associated with mutual funds, charged annually for fund distribution and marketing costs, embedded in the fund's expense ratio.

Fund Assets

Financial resources under the control of an investment fund, including cash, securities, and other investments.

Sales Expenses

Costs incurred directly from the selling of goods or services, including things like commissions, advertising, and promotional materials.