Forecasting methods that assume that the demand forecast is highly correlated with certain factors in the environment (e.g.,the state of the economy,interest rates,etc.)to make a forecast are known as
A) qualitative forecasting methods.
B) time series forecasting methods.
C) causal forecasting methods.
D) simulation forecasting methods.
E) none of the above

Question

Quizplus · Accepted Answer

Causal forecasting methods assume that there is a causal relationship between the demand forecast and certain factors in the environment. These factors are used as predictor variables to create a model that can be used to make forecasts. Causal methods are often employed when forecasting long-term trends or when attempting to understand the underlying drivers of demand.

Forecasting Methods That Assume That the Demand Forecast Is Highly