The President of State University Wants to Forecast Student Enrollments

question 50

Multiple Choice

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: $$\begin{array} { | l | c | } \hline \text { Year } & \text { Enrollments } \\\hline \text { 5 Years ago } & 15,000 \\\hline \text { 4 Years ago } & 16,000 \\\hline \text { 3 Years ago } & 18,000 \\\hline \text { 2 Years ago } & 20,000 \\\hline \text { Last Year } & 21,000 \\\hline\end{array}$$
What is the forecast for this year using a four-year simple moving average?

• A) 18,750
• B) 19,500
• C) 21,000
• D) 22,650
• E) 22,800

---

Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs, attempting to determine how these groups should organize and coordinate efforts to achieve maximum output.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Society

Society refers to a group of individuals living together in a more or less ordered community, sharing common traditions, institutions, and values.

Scarcity

The basic challenge in economics of limitless human desires within a finite resource environment.