Which Forecasting Technique Tends to Be Appropriate When There Is

question 71

Multiple Choice

Which forecasting technique tends to be appropriate when there is little or no historical data?

• A)exponential smoothing
• B)judgmental
• C)time series
• D)cause and effect

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Definitions:

Dollar Rally

A situation where the value of the U.S. dollar strengthens significantly against a basket of other currencies.

Foreign Currencies

Currencies used in countries other than one’s own, involved in international trading and foreign exchange markets.

Uncovered Interest Parity

A financial theory stating that the difference in interest rates between two countries equals the expected change in exchange rates between their currencies.

Exchange Rate Changes

Fluctuations in the value of one currency relative to another, affecting international trade and investments.