Which of the following statements is true about demand forecasts?
A)Demand forecasts are always accurate in predicting the actual demand that will occur in the future period.
B)Demand forecasts are rarely accurate in predicting the actual demand that will occur in the future period.
C)Demand forecasts are estimates of long-term demand for a firm's products.
D)Demand forecasts do not account for the randomness in the actual demand.

Question

Quizplus · Accepted Answer

Demand forecasts are rarely accurate in predicting the actual demand that will occur in the future period. While they can be a helpful tool for businesses to project expected sales and production needs, factors such as changing market conditions, consumer behavior, and external events can all impact demand and make it difficult to make accurate forecasts.

Which of the Following Statements Is True About Demand Forecasts