The __________ Method Is Based on the Assumption That Sales

question 72

Multiple Choice

The __________ method is based on the assumption that sales follow a linear pattern. The major problem with this method, however, is knowing how much past data to include in the calculation of the forecast.

• A) exponential smoothing
• B) regression
• C) moving average
• D) percentage rate of change
• E) none of the above

---

Definitions:

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Interest Rates

The cost of borrowing money or the return earned on an investment, usually expressed as a percentage.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling.