Which One of the Following Statements About Forecasting Is FALSE

question 113

Multiple Choice

Which one of the following statements about forecasting is FALSE?

• A)You should use the simple moving-average method to estimate the mean demand of a time series that has a pronounced trend and seasonal influences.
• B)The weighted moving-average method allows forecasters to emphasize recent demand over earlier demand.The forecast will be more responsive to change in the underlying average of the demand series.
• C)The most frequently used time-series forecasting method is exponential smoothing because of its simplicity and the small amount of data needed to support it.
• D)In exponential smoothing,higher values of alpha place greater weight on recent demands in computing the average.

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Definitions:

Reduction In Operating Assets

A decrease in the value or amount of assets used for generating revenue.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Average Operating Assets

The average value of the assets used in day-to-day operations over a certain period, important for determining return on investment and operational efficiency.

Operating Expenses

Costs related to the normal operations of a business, excluding costs of goods sold, such as sales and marketing expenses.