What important assumption is made about statistical (quantitative) forecasting methods?
A) the past is a valid indicator of the future
B) demand trend is seldom linear
C) seasonal variations are small
D) random variations are small
E) all of the above

Question

Quizplus · Accepted Answer

Statistical forecasting methods assume that the past is a valid indicator of the future, which is why they use historical data to generate forecasts. However, it is important to note that this assumption may not always hold true, especially when there are significant changes in the environment or factors affecting demand.

What Important Assumption Is Made About Statistical (Quantitative) Forecasting Methods