With the Multiplicative Seasonal Method of Forecasting

question 169

Multiple Choice

With the multiplicative seasonal method of forecasting,

• A) the times series cannot exhibit a trend.
• B) seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast.
• C) the seasonal amplitude is a constant, regardless of the magnitude of average demand.
• D) there can only be four seasons in the time series data.

---

Definitions:

Federal Trade Commission

The Federal Trade Commission is a U.S. federal agency tasked with protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

American Association of CPAs

A professional organization in the United States that sets ethical standards for Certified Public Accountants and offers training and certification.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed in the business within one year or within the business's operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that a company owes and are due within one year.