Which One of the Following Statements About Forecasting Is FALSE

question 145

Multiple Choice

Which one of the following statements about forecasting is FALSE?

• A) You should use the simple moving average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences.
• B) The weighted moving average method allows forecasters to emphasize recent demand over earlier demand. The forecast will be more responsive to change in the underlying average of the demand series.
• C) The most frequently used time series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it.
• D) In exponential smoothing, higher alpha values place greater weight on recent demands in computing the average.

---

Definitions:

Industrial Products Division

A subsection of a company focused on the production and sale of goods used in industrial and commercial applications.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company.

Variable Cost

A cost that varies directly with the level of output or production, such as raw materials or direct labor costs.

Division Delta

A specific division, unit, or segment within a larger organization, identified by the designation "Delta."