The Forecasting Technique That Works Best for Short Planning Horizons

question 56

Multiple Choice

The forecasting technique that works best for short planning horizons is _____.

• A) regression
• B) moving average
• C) mean absolute percentage error (MAPE)
• D) Delphi

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Definitions:

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain at a constant.

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Productivity

Productivity measures the efficiency of production in terms of the amount of goods and services produced per unit of labor, capital, or other inputs.

Total Output

The total amount of goods or services produced by a firm or country within a specific period.