The Following Table Includes the Information About a Monthly Time

question 42

Multiple Choice

The following table includes the information about a monthly time series. When a forecast is made by the three-month moving average method,all three monthly observations used to make this forecast are treated equally in the sense that each of them has the same weight of 1/3.What is the forecast for May when the three-month weighted moving average method is applied with the weights: 1/6,2/6,and 3/6? Assign the smallest weight to the oldest data and the largest weight to the most recent data.

• A) 19.00
• B) 24.00
• C) 18.67
• D) 21.17

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Definitions:

Break-even Level

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Earnings per Share

A company's net profit divided by the number of its outstanding shares, indicating the portion of a company's profit allocated to each share of stock.

Repurchase Shares

A corporate action where a company buys back its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the value of remaining shares.

Stock Outstanding

The total shares of a corporation's stock currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.