One Technique of Forecasting Is Called the Moving Average

question 1

Multiple Choice

One technique of forecasting is called the Moving Average.In this method rather than using last years sales as the forecast, ___________.

• A) A simple average for the last 2 or 4 years is used
• B) A smoothing technique is used to determine the forecast
• C) A decomposition of the industry is used to average the sales
• D) An average is calculated using the mid-point of the sales trend and then is computed by multiplying it by a beta coefficient to get the next year's forecast
• E) None of the above

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Definitions:

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Independent Variable

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