Suppose That You Are Using the Three-Period Simple Moving Average

question 4

True/False

Suppose that you are using the three-period simple moving average method to forecast sales, and sales have been increasing by 10% every period. Then your forecasts will be increasing by 10% every period.

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Definitions:

Test Statistic

A calculated value from a data sample used to test a hypothesis against some criteria.

P-Value

The probability of observing a statistical summary at least as extreme as the one observed if the null hypothesis is true.

Sample Mean

The average of a set of numerical values taken from a larger population, used as an estimate of the population mean.

Critical Value

A threshold value in hypothesis testing used to determine whether to reject the null hypothesis, based on the observed statistic and the chosen significance level.