A Company Wants to Forecast Demand Using the Simple Moving

question 37

Multiple Choice

A company wants to forecast demand using the simple moving average.The company uses four positive prior yearly (2013, 2014, 2105 and 2016) sales values.All yearly sales figures are unique (no repetitions) .Which of the following is most accurate about the moving average forecast for year 2017?

• A)Has to be smaller than at least one of the four yearly sales figures.
• B)Has to be larger than at least one of the four yearly sales figures.
• C)Has to be between the smallest and largest yearly sales figures.
• D)Has to greater than all four yearly sales figures.
• E)A, B and C only

---

Definitions:

Payback Period

This is the duration required to recover the cost of an investment.

Income From Operations

The earnings generated from a company's regular, core business operations.

Net Cash Flows

The difference between a company's cash inflows and outflows within a specified period.

Average Rate

A value that represents the central tendency of a set of numbers, calculated by dividing the sum of all values by the number of values.