Which of the Following Would Be Considered a Possible Drawback

question 19

Multiple Choice

Which of the following would be considered a possible drawback of using executive opinions to develop a forecast?

• A) It is difficult to interpret the results.
• B) Responsibility is diffused for the forecast.
• C) Extensive use of computers is needed.
• D) It brings together the knowledge of top managers.
• E) Forecasters are sometimes overly influenced by recent events.

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Definitions:

Product Warranty

A guarantee from the seller to the buyer that a product will perform to a certain standard or will be repaired or replaced during a specified period.

Market Rate

The prevailing interest rate available in the marketplace on deposits, debts, or loans.

Nominal Rate

The Nominal Rate is the interest rate stated on a loan or financial product, not taking into account inflation or other factors that could affect the real value of the interest.

Premium

An amount paid in excess of a standard price or value, often related to insurance policies, bonds above par, or quality products.