Which of the following statements about time series analysis is true?
A) It is popular with businesses.
B) It is based on the assumption that future demand will be the same as past demand.
C) It only uses the most recent data collected.
D) It is based on moving averages only.

Question

Quizplus · Accepted Answer

Time series analysis is widely used by businesses for forecasting and planning purposes, making statement A true. However, statement B is not entirely accurate as time series analysis can consider various factors beyond just past demand. Statement C is also incorrect as time series analysis typically uses multiple historical data points. Statement D is not entirely accurate as other statistical methods can also be used in time series analysis, such as exponential smoothing and ARIMA models.

Which of the Following Statements About Time Series Analysis Is