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vlabodo [156]
3 years ago
7

Even though the moving averages help highlight the long-run trend of a time series, the moving-average model is not designed for

making forecasts in the presence of trends. Explain the reason why we should not rely on moving averages for predicting future observations of a trending series.
Business
1 answer:
kobusy [5.1K]3 years ago
4 0

Answer:

Moving averages <em>cannot be used to make future forecasts successfully because certain events like demand, supply ,quality and external factors such as competitions</em> cannot be determined with the use of Moving averages, and these factors have a huge impact on prices

Explanation:

Moving averages are generated / obtained using data from events that occurred previously hence they highlight the long-run trend of a time series, but <em>they cannot be used to make future forecasts successfully because certain events like demand, supply ,quality and external factors such as competitions</em> cannot be determined with the use of Moving averages. and these factors have a huge impact on prices

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Latvia and Estonia are two countries. Assume that currently there is no trade between them. Each country has 100 units of labor.
anzhelika [568]

Answer:

Assume that currently there is no trade between them. Each country has 100 units of labor. Latvia produces fish, at a cost of 1 unit of labor per fish, and grain.

Explanation:

7 0
3 years ago
According to efficient market​ theory, which of the following can best predict the stock price of a particular company​ tomorrow
11111nata11111 [884]

Answer:

B. a finance professor who knows a lot of investment theory

Explanation:

The efficient market theory can be regarded as efficient market hypothesis, it is one that stressed that

all information are been reflected by

share prices. It also state that there is possibility of alpha generation.

3 0
3 years ago
Why are both life expectancy and quality of life used to evaluate overall health?
OlgaM077 [116]
The complete health of a person is a good forecaster of his or her life expectancy. If a person's quality of life is higher than his/her life expectancy is higher which makes him or her live longer. Also, if a person's overall health is good than the life expectancy is higher which also makes him or her live longer. Consequently, both life expectancy and quality of life are valid indicators of overall health. 
6 0
3 years ago
The result of the increase in the rate of change in the business environment from causes such as natural disasters and global co
Anettt [7]

Answer:

The correct answer is: change more quickly than ever before.

Explanation:

Changes appear in the world day by day faster. In the business field, the ability to adapt has become a <em>competitive advantage </em>for firms because the capacity they have to face different scenarios such as the implementation of <em>new technology, political stress </em>or <em>natural disasters</em> has gotten more importance. If companies want to survive these situations, they have to come up with a contingency plan.

4 0
3 years ago
Given the following historical demand, what is the weighted moving average forecast (0.4, 0.3, 0.3) for Week 6?
Roman55 [17]

Answer:

The correct option is B. 9200.

Explanation:

This can simply be answered as follows:

F_{6} =(D_{5}*W_{5})+(D_{4}*W_{4})+(D_{3}*W_{3}) .................. (1)

Where:

F_{6} = Weighted moving average forecast (0.4, 0.3, 0.3) for Week 6 = ?

D_{5} = Week 5 demand = 11,000

D_{4} = Week 4 demand = 9,000

D_{3} = Week 3 demand = 7,000

The (0.4, 0.3, 0.3) implies that:

W_{5}  = Weight of Week 5 demand = 0.4

W_{4}  = Weight of Week 4 demand = 0.3

W_{3}  = Weight of Week 3 demand = 0.3

Substituting all the relevant values into equation (1), we have:

F_{6} = (11,000 * 0.40) + (9,000 * 0.30) + (7,000 * 0.30) = 9,200

Therefore, the correct option is B. 9200.

7 0
3 years ago
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