Which of the Following Is True of the Linear Trend

question 109

Multiple Choice

Which of the following is true of the linear trend model?

• A) It assigns exponentially decreasing weights to older observations.
• B) It is a causal forecasting model.
• C) It can extract a long-term upward or downward steady movement in a series.
• D) It is used when a series involves only random fluctuations.

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Definitions:

Centralization

The concentration of decision-making authority at the top levels of an organization, often leading to more consistent and efficient policy implementation.

Product Variety

The range of different items or products a company offers to meet diverse customer needs or preferences.

Demand Uncertainty

This refers to the unpredictability or variation in the demand for products or services in the market.

Safety Inventory

Extra stock kept on hand to prevent stockouts due to variable demand and lead times.