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:

Grudge-holding

The persistent feeling of ill will or resentment resulting from a past insult or injury, which can impact consumer relations and brand reputation.

Motivated Reasoning

The concept that people's desires and preferences influence their decision-making process and judgments.

Sincere Brand

A brand that is perceived as genuine and honest in its dealings and communications with customers.

Levels of Disappointment

Refers to varying degrees of dissatisfaction experienced by consumers when expectations are not met by products, services, or experiences.