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

question 67

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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:

ATC Schedule

A tabulation of average total costs at different levels of output, showing how costs vary with changes in output.

Demand Schedule

A demand schedule is a table that shows the quantity of goods or services demanded at different price levels.

TR

Total Revenue, which is the total income generated from the sale of goods or services.

TC

Total cost, which is the sum of all costs incurred by a firm in the production of goods or services.

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