Faulty underlying assumptions are the most frequent cause of forecasting errors.

Question

Quizplus · Accepted Answer

Faulty underlying assumptions can lead to inaccurate predictions and are a common source of forecasting errors. Factors such as changes in market conditions, unexpected events, and errors in data analysis can also contribute to forecasting errors, but faulty assumptions are often the root cause. Therefore, it is essential to identify and challenge any assumptions made during the forecasting process to improve the accuracy of predictions.

Faulty Underlying Assumptions Are the Most Frequent Cause of Forecasting