Which of the Following Methods Is Appropriate for Forecasting a Time

question 18

Multiple Choice

Which of the following methods is appropriate for forecasting a time series when the trend,cyclical,and seasonal components of the series are not significant?

• A)Moving averages
• B)Exponential smoothing
• C)Mean absolute deviation
• D)Seasonal indexes

---

Definitions:

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Consumer Purchases

This term refers to the buying of goods and services by consumers for their personal use.

Price Elasticity Coefficient

A measure used in economics to show how the quantity demanded of a good or service responds to a change in its price, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Elastic

Describes a situation where the demand or supply of a good or service is sensitive to changes in price.