A Persistent Tendency for Forecasts to Be Greater Than or Less

question 5

Multiple Choice

A persistent tendency for forecasts to be greater than or less than the actual values is called:

• A)bias.
• B)tracking.
• C)control charting.
• D)positive correlation.
• E)linear regression.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, it includes all variable and fixed costs.

Fixed Capital

Long-term assets used in production, such as buildings, machinery, and equipment, which are not easily converted into cash.

Marginal Cost

The additional expenditure resulting from the production of an extra unit of a product or service.

Average Total Cost

The total costs of production (both fixed and variable costs) divided by the quantity of output produced, indicating the cost per unit of output.