An Operation Analyst Is Forecasting This Year's Demand for One

question 14

Multiple Choice

An operation analyst is forecasting this year's demand for one of his company's products based on the following historical data:
$$\begin{array} { | c | c | } \hline \text { Year } & \text { \# Sald } \\\hline 4 \text { years ago } & 10,000 \\\hline 3 \text { years ago } & 12,000 \\\hline \text { 2 years ago } & 18,000 \\\hline \text { Last year } & 20,000 \\\hline\end{array}$$
What is the forecast for this year using a moving-average forecast based on the last four years?

• A) 22,000
• B) 20,000
• C) 18,000
• D) 15,000
• E) 12,000

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Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian investment account for holding savings and investment assets, with tax advantages.

Compounded

The process of accumulating interest on an investment or loan where the earned interest is added to the principal, leading to interest being earned on interest.

Annually

Occurring once every year, often used in the context of events, payments, or calculations that repeat on a yearly basis.

RRSP

Registered Retirement Savings Plan, a retirement savings and investment vehicle for employees and the self-employed in Canada, offering tax benefits.