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

question 52

Multiple Choice

Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been decreasing by 10% 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 increasing.
• E) Forecasts will be decreasing by 2.5% every period.

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Definitions:

Automatic Processing

A type of cognition that occurs without conscious awareness or effort, often involving routine tasks.

Encoded

The process of converting information into a particular form, often for storage, transmission, or processing in communications and information technology.

Tournament Game

A competition involving a series of games or rounds, where the outcome determines the advancement to subsequent rounds.

Effortful Processing

A type of information processing that requires attention and conscious effort in order to encode or remember information.