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

question 67

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 lower than the actual sales.

---

Definitions:

Scores

Quantitative values assigned to individuals or items for the purpose of evaluation or measurement.

Variance

A measure of the dispersion of a set of data points around their mean, indicating how spread out the data points are.

Standard Deviation

A measure of the dispersion or variability of a set of data points, indicating how spread out the values are from the mean of the data set.

Biased Estimates

Estimates that are systematically off-target in a certain direction due to errors in methodology or sample selection.