If Brandon Edward Were Working to Develop a Forecast Using

question 28

Multiple Choice

If Brandon Edward were working to develop a forecast using a moving averages approach, but he noticed a detectable trend in the historical data, he should

• A) use weights to place more emphasis on recent data
• B) use weights to minimize the importance of the trend
• C) change to a naïve approach
• D) use a simple moving average
• E) change to a qualitative approach

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Definitions:

Prepaid Freight

Costs paid by a shipper in advance for shipment of goods, indicating that the sender bears the freight charges.

Cash Discount

A reduction in the invoice price offered to buyers as an incentive for early payment.

Wholesalers

Companies that sell merchandise to other businesses rather than to the public.

Credit Terms

Terms for payment on account by the buyer to the seller.