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

question 135

Multiple Choice

Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been increasing by 20% every period. How will your forecasts perform?

• A) Forecasts will be lower than actual.
• B) Forecasts will be higher than actual.
• C) Forecasts will equal actual.
• D) Forecasts will be decreasing.
• E) Forecasts will be increasing by 5.0% every period.

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Definitions:

Prosocial Behaviour

Positive actions that benefit others, including kindness, sharing, and helping behaviors.

Biological

Pertaining to the science of life and living organisms, including their structure, function, growth, and origin.

Evolutionary Explanation

A theory or account that proposes how certain traits or behaviors have developed over time through the process of natural selection.

Altruistic Gene

A hypothetical gene that influences individuals to act in a selfless manner for the benefit of others.