Which of the Following Forecasting Methods Would Be Most Accurate

question 63

Multiple Choice

Which of the following forecasting methods would be most accurate if demand were rapidly decreasing?

• A) 3-month moving average
• B) 6-month moving average
• C) 12-month moving average
• D) Simple mean
• E) Exponential smoothing with  = 0.001

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Definitions:

Amortization

The process of gradually writing off the initial cost of an asset over its useful life or pay down the principal of a loan over time.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.