Which of the Following Forecasting Methods Tends to Lag Behind

question 59

Multiple Choice

Which of the following forecasting methods tends to lag behind actual sales when there is a strong trend?

• A) naïve forecast
• B) unit rate of change
• C) moving average
• D) both a and b are correct
• E) both a and c are correct

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Definitions:

Credit Terms

The conditions under which credit will be extended to a borrower, including the repayment schedule, interest rate, and duration of the loan.

ACP

Average Collection Period, measuring the average number of days it takes a company to collect its accounts receivable.

Credit Periods

The time frame allowed by a seller for a buyer to pay for goods or services received, without incurring interest or penalties.

High-demand Products

Products that are in large demand by consumers, often leading to quick sales and potentially higher prices.