The Accuracy of the Percent of Sales Forecast Method Is

question 23

Multiple Choice

The accuracy of the percent of sales forecast method is impaired if

• A)scale economies are present for assets.
• B)assets must be purchased in discrete quantities.
• C)asset needs are independent of sales level.
• D)all of the above impair the accuracy of the percent of sales forecast method.

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Definitions:

Level Shift

A term often used in time series analysis indicating a change in the mean level of a series at a certain point in time.

Assignable Variation

Assignable variation is a concept in quality control that refers to variation in a process that can be traced to specific causes, as opposed to random variation, which is inherent and cannot be easily identified and controlled.

Trend

A general direction in which something is developing or changing, often identified in data analysis.

Average Run Length

In statistical process control, it is the expected number of samples taken until a control chart signals a possible shift in process parameters.