A contractor wants to forecast the number of contracts in future quarters, using quarterly data on number of contracts during the 10-year period from 2001 to 2010. Which of the following would be the most appropriate analysis to perform?
A) Autoregressive modeling
B) One-way ANOVA
C) Least-squares forecasting with monthly or quarterly data
D) Two-way ANOVA

Question

Quizplus · Accepted Answer

The most appropriate analysis to perform in this case would be least-squares forecasting with monthly or quarterly data. This method involves using historical data to develop a model that describes the relationship between the number of contracts and the factors that influence it. By using monthly or quarterly data, the contractor can capture any seasonality or other patterns that may affect the number of contracts. Autoregressive modeling may also be useful in this context, but it is typically used when there is a clear correlation between the number of contracts in successive periods. One-way and two-way ANOVA are not appropriate in this case because they are used to test for differences between groups, which is not the objective of this analysis.

A Contractor Wants to Forecast the Number of Contracts in Future