Time series forecasting methods are most appropriate when
A) there is little historical data available.
B) the basic demand pattern varies significantly from one year to the next.
C) the basic demand pattern does not vary significantly from one year to the next.
D) experts have critical market intelligence.
E) forecasting demand several years into the future.

Question

Quizplus · Accepted Answer

Time series forecasting methods are suitable when the basic demand pattern does not vary significantly from year to year. This means that there is a stable trend, seasonality, and cyclical patterns in the data. These methods use historical data to identify patterns and relationships and use them to build a forecast for the future. If the demand pattern varies significantly from year to year, then other methods, such as causal forecasting, may be more appropriate.

Time Series Forecasting Methods Are Most Appropriate When