Which of the following forecasting methodologies is considered a causal forecasting technique?
A)Box Jenkins Technique
B)Weighted moving average
C)Leading indicators
D)Historical analogy
E)Focus forecasting

Question

Quizplus · Accepted Answer

Leading indicators are considered a causal forecasting technique because they use economic or other external data to predict future demand for a product or service. This method analyzes the cause-and-effect relationship between the leading indicators and the demand for the product or service. The other options listed are not considered causal forecasting techniques.

Which of the Following Forecasting Methodologies Is Considered a Causal