Table 8.7
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.

-Which statement about forecast accuracy is True?
A) A manager must be careful not to "overfit" past data.
B) The ultimate test of forecasting power is how well a model fits past data.
C) The ultimate test of forecasting power is how a model fits holdout samples.
D) The best technique in explaining past data is the best technique to predict the future.

Question

Table 8.7
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.
 
-Which statement about forecast accuracy is True?
A) A manager must be careful not to "overfit" past data. 
B) The ultimate test of forecasting power is how well a model fits past data. 
C) The ultimate test of forecasting power is how a model fits holdout samples. 
D) The best technique in explaining past data is the best technique to predict the future.

Quizplus · Accepted Answer

The Answer of Table 8.7
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.
 
-Which statement about forecast accuracy is True?
A) A manager must be careful not to "overfit" past data. 
B) The ultimate test of forecasting power is how well a model fits past data. 
C) The ultimate test of forecasting power is how a model fits holdout samples. 
D) The best technique in explaining past data is the best technique to predict the future.

Table 8.7 a Sales Manager Wants to Forecast Monthly Sales of the of the Machines