Which of the following does a forecast always assume?
A) Base demand always moves in a positive direction
B) Business cycles do not exist
C) The past always repeats itself
D) Every forecast is seasonal

Question

Quizplus · Accepted Answer

A forecast always assumes that the past will repeat itself. This is known as the principle of "historical analogy," in which past patterns and trends are used to predict future outcomes. However, this does not mean that the past will always repeat itself exactly, as external factors can cause changes in demand and other variables.

Which of the Following Does a Forecast Always Assume