Which of the following statements about time-series forecasting is true?
A) It is based on the assumption that future demand will be the same as past demand.
B) It makes extensive use of the data collected in the qualitative approach.
C) It is based on the assumption that the analysis of past demand helps predict future demand.
D) Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than associative forecasting.
E) All of the above are true.

Question

Quizplus · Accepted Answer

Time-series forecasting is based on the assumption that analyzing past demand helps to predict future demand. This method involves studying the patterns, trends, and cycles in historical data and using that information to make future predictions. It does not make extensive use of qualitative data, and it is not always more powerful than associative forecasting, which includes factors such as market trends and external factors.

Which of the Following Statements About Time-Series Forecasting Is True