The Demand for a Product for the Last Six Years

question 4

Multiple Choice

The demand for a product for the last six years has been 15,15,17,18,20,and 19.The manager wants to predict the demand for this time series using the following simple linear trend equation: tr_t = 12 + 2t.What are the forecast errors for the 5^th and 6^th years?

• A)0,-3
• B)0,+3
• C)+2,+5
• D)-2,-5
• E)-1,-4

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Definitions:

Dividend Yield

A key financial figure that identifies the ratio of a firm's yearly dividends to its stock price.

Closed at Par

A situation where a bond or preferred stock is bought or sold at its face value.

Dividend Yield

The Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, providing investors with insight into the income generated from an investment in its shares.

Price Appreciation

An increase in the value of an asset or investment over time.