Which of the following is the best statement about the general principles of forecasting?
A) forecasts are more accurate for larger groups of items
B) forecasts are more accurate for nearer periods of time
C) every forecast should include an estimate of error
D) all of the above are general principles of forecasting
E) none of the above is a general principle of forecasting

Question

Quizplus · Accepted Answer

Option A is correct as forecasts are more accurate for larger groups of items as compared to individual items. 
Option B is not entirely correct as forecasts are more accurate for shorter periods of time but this does not mean that longer periods cannot be forecasted with reasonable accuracy. 
Option C is also true as every forecast should include an estimate of error to help users understand the quality of the forecast. 
Therefore, all of the above options are general principles of forecasting.

Which of the Following Is the Best Statement About the General