One Technique of Forecasting Is Called the Moving Average

question 39

Multiple Choice

One technique of forecasting is called the moving average.In this method,rather than using last year's sales as the forecast ___________.

• A)A simple average for the last two or four years is used
• B)A smoothing technique is used to determine the forecast
• C)A decomposition of the industry is used to average the sales
• D)An average is calculated using the midpoint of the sales trend and then is computed by multiplying it by a beta coefficient to get the next year's forecast
• E)None of these