Which One of the Following Statements Is TRUE

question 181

Multiple Choice

Which one of the following statements is TRUE?

• A) The ideal of zero bias and zero MAD can be accomplished by systematically searching for the best values of the smoothing constants.
• B) Bias is always less than MAD.
• C) For projections of more stable demand patterns without trends, seasonal influences, or cyclical influences, use larger values of n in the simple moving average approach.
• D) Getting a single forecast of 500 units for the month of July is better than getting a forecast that there is a 95 percent chance that demand for July will be between 450 and 550 units.

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Definitions:

Matching

An accounting principle that involves recognizing expenses in the same period as the revenues they helped generate, to accurately reflect profits.

Code Letter

A system that uses letters or numbers for the classification or identification of items in a list or database.

Unearned Ticket Revenue

Income received from tickets sold for events that have not yet occurred, recognized as a liability until the event takes place.

Season Tickets

Long-term passes purchased in advance for multiple access to a venue, event series, or mode of transportation.