The Business Analyst for Ace Business Machines, Inc What Is the Forecast for This Year Using a Moving-Average

question 60

Multiple Choice

The business analyst for Ace Business Machines, Inc. wants to forecast this year's demand for manual typewriters based on the following historical data:
$$\begin{array} { | c | c | } \hline \text { Time Periad } & \text { Demand } \\\hline 5 \text { years ago } & 900 \\\hline 4 \text { years ago } & 700 \\\hline 3 \text { years ago } & 600 \\\hline 2 \text { years ago } & 500 \\\hline \text { Last year } & 300 \\\hline\end{array}$$
What is the forecast for this year using a moving-average forecast based on the last three years?

• A) 163
• B) 180
• C) 300
• D) 467
• E) 510

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Definitions:

Repurchase Agreements

Short-term borrowing for dealers in government securities, where the dealer sells the government securities to investors, usually on an overnight basis, with an agreement to buy them back.

Counterparty

The other organization or party involved in a financial transaction, opposite to the primary party initiating the transaction.

Futures Contract

A formal contract to purchase or sell a specific financial asset or commodity at an agreed-upon price on a future date.

Credit Risk

The risk of loss due to a borrower's inability to make payments on any type of debt.