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

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Definitions:

Self-fulfilling Prophecy

A psychological phenomenon in which an individual's or group's belief or expectation brings about its own fulfillment, either directly or indirectly, influencing behavior and outcomes.

Preexisting Expectations

Assumptions or beliefs that one has before encountering new information or experiences.

Internal Attributions

The tendency to explain one's behavior or the behavior of others based on internal, personal characteristics rather than external situations.

Behavior

The actions, reactions, or conduct of an individual, often studied in psychology to understand individuals and groups.