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

question 18

Multiple Choice

Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been increasing by 40% every period. How will your forecasts perform?

• A) Forecasts will be increasing by 40.0% every period.
• B) Forecasts will be higher than actual.
• C) Forecasts will equal actual.
• D) Forecasts will be decreasing.
• E) Forecasts will be increasing by 10.0% every period.

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Definitions:

Alpha Strategies

Approaches or methods that aim to achieve dominant or leading positions in a particular area or field.

Boomerang Effect

A phenomenon where an attempt to persuade or change behavior results in the opposite effect, often strengthening original attitudes or behaviors.

Systematic Desensitization

Systematic Desensitization is a behavioral therapy technique used to overcome phobias and anxieties by gradually exposing the patient to the source of their fear.

Inoculation

A psychological technique designed to build resilience against persuasive arguments by exposing individuals to weakened versions of those arguments.