Forecasts
A) become more accurate with longer time horizons
B) are more accurate for individual items than for groups of items
C) are seldom perfect
D) all of the above

Question

Quizplus · Accepted Answer

Forecasts are inherently uncertain and thus are seldom perfect, especially as they attempt to predict future events or trends. The accuracy of forecasts typically decreases with longer time horizons and increases when aggregating items because individual variations tend to cancel out in groups, making the forecast more reliable.