Over the Long Term, Which of the Following Forecasting Models

question 88

Multiple Choice

Over the long term, which of the following forecasting models will likely require carrying the least amount of data?

• A) Naïve
• B) Simple mean
• C) Exponential smoothing
• D) Weighted moving average
• E) Moving average

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Definitions:

Demand

The consumer's desire and willingness to pay a price for a specific good or service.

Elastic Demand

A market condition where the quantity demanded of a product changes significantly in response to price changes.

Inelastic Demand

A market situation where the quantity demanded of a product does not change significantly when its price varies.

Price Elasticity

A measure of how much the demand for a product changes in response to a change in its price.