ENTREPRENEURIAL PLANNING
MARKETING PLAN DEVELOPMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following are the best explanation of the moving average method of sales forecasting?
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It uses market research to identify the fastest moving marketchanges
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By using qualitative methods, it avoids the need for anycalculations
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By averaging future forecast it avoids the risk of unforeseen events making the sales prediction inaccurate
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By averaging past data the predicted trend of future salesis easier to identify
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Explanation:
Detailed explanation-1: -And the MA method is the most accurate method of forecasting when seasonally adjusted data is used.
Detailed explanation-2: -Forecasting. Hence, the 3-mth weighted moving average has the lowest MAD and is the best forecast method among the three.
Detailed explanation-3: -A moving average is a technical indicator that investors and traders use to determine the trend direction of securities. It is calculated by adding up all the data points during a specific period and dividing the sum by the number of time periods. Moving averages help technical traders to generate trading signals.
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