How Can You Describe the Moving Average Method

question 29

Multiple Choice

How can you describe the moving average method?

• A) A method that smoothes out a time series.
• B) A method to deseasonalize a time series.
• C) A technique that results in a trend line equation.
• D) A method for computing the slope of a trend line.

---

Definitions:

Spin-off

A type of corporate reorganization in which a company creates a new independent company through the sale or distribution of new shares of its existing business.

Vertical Integration

An approach where a business grows by integrating various stages of its supply chain, including instances where a producer owns both its supplier and distributor.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.

Operating Efficiencies

A measure of how well a company utilizes its resources to produce goods and services, often reflecting in the reduction of costs and improvement in output.