In forecasting, what is an index?
A) It is a single measure that weights multiple indicators and provides a measure of overall expectation.
B) It is a stream of historical data, such as weekly sales.
C) It is a time series that does not have trend, seasonal, or cyclical effects but is relatively constant and only exhibits random behavior.
D) It is a measure that provides a complete forecast.

Question

Quizplus · Accepted Answer

An index in forecasting is a composite measure that combines multiple indicators into a single value, providing an overall assessment or expectation. This allows for a more comprehensive view of the forecasted variable by incorporating various factors into the analysis.

In Forecasting, What Is an Index