A Company Wants to Forecast Demand Using the Simple Moving

question 44

Multiple Choice

A company wants to forecast demand using the simple moving average.If the company uses four prior yearly sales values , which of the following is the simple moving average forecast for year 20142017?

• A)100.5
• B)140.0
• C)142.5
• D)145.5
• E)155.0

---

Definitions:

Rate of Return

The augmentation or diminution in an investment's valuation across a specified timeframe, articulated as a fraction of the initial investment expense.

Present Value

The present financial worth of expecting a sum of money or cash flows in the future, calculated by a certain rate of return.

Cash Flows

The cumulative amount of money circulating in and exiting a business, markedly influencing its liquidity position.

Effective Annual Rate

The interest rate on an investment or loan that is compounded annually, reflecting the full amount of interest paid or earned over a year.