Which of the Following Is the Least Useful Time-Series Forecasting

question 9

Multiple Choice

Which of the following is the least useful time-series forecasting model when there is a strong upward trend in the data?

• A)Estimated exponential trend model
• B)A five-period centered moving average
• C)Exponential smoothing with a high α
• D)Regression model with trend and seasonal binaries

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Definitions:

Minimum Return

The least amount of profit or yield expected from an investment, project, or venture to consider it desirable or viable.

Invested Assets

Resources that are obtained with the goal of producing income or profit.

Operating Income

Income generated from the normal business operations of a company, excluding expenses such as interest and taxes.

DuPont Formula

A formula that breaks down Return on Equity (ROE) into three components: profit margin, asset turnover, and financial leverage, to analyze a company's financial performance.