Which one of the following statements about forecasting is FALSE?
A) To achieve the objective of developing a useful forecast from the information at hand, the forecaster must select the appropriate technique. This choice sometimes involves a trade-off between forecast accuracy and cost.
B) Three general types of forecasting techniques are used for demand forecasting: time series analysis, causal methods, and judgment methods.
C) Time series express the relationship between the factor to be forecast and related factors, such as promotional campaigns, economic conditions, and competitor actions.
D) A time series is a list of repeated observations of a phenomenon, such as demand, arranged in the order in which they actually occurred.

Question

Quizplus · Accepted Answer

Time series do not express the relationship between the factor to be forecast and related factors. Instead, they focus on analyzing past patterns and trends of the factor to be forecast to predict future values. Causal methods, on the other hand, do take into account related factors and attempt to quantify their impact on the factor being forecasted.

Which One of the Following Statements About Forecasting Is FALSE