In Order to Increase the Responsiveness of a Forecast Made

question 45

Multiple Choice

In order to increase the responsiveness of a forecast made using the moving average technique,the number of data points in the average should be:

• A) decreased.
• B) increased.
• C) multiplied by a larger alpha.
• D) multiplied by a smaller alpha.
• E) none of the choices are true.

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Definitions:

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, including assets, liabilities, and equity.

Owner's Capital

Represents the total equity belonging to the owners of a company or business, reflecting the net assets minus liabilities.

Accounts Receivable

Money owed to a company by its customers from sales or services rendered on credit, recorded as an asset on the balance sheet.

Accounts Payable

Liabilities of a business arising from credit purchases from suppliers, displayed on the company's balance sheet as money owed.