Refer to the scenario below to answer the following questions.
Forecasting (Scenario)
Imagine that you are a manager in the construction industry in Calgary, Alberta. Calgary has recently been experiencing rapid growth, bringing with it increased demand for construction services and more intense competition. The provincial government has been easing restrictions on public land use and has promoted a business-friendly environment to attract more corporations to the area. Furthermore, the oil business is booming, and there is a severe shortage of housing and worker accommodations in the oil-producing regions. However, you are also aware of how quickly these factors can change and the impact that a change in government or a decline in the price of oil can have on the construction industry. Given these considerations, you try to develop a forecast to help plan your company's future.
-You try to predict next year's house sales by analyzing the sales data for the past five years. You have used which forecasting technique?
A) time series analysis
B) regression models
C) economic indicators
D) substitution effect
E) jury of opinion

Question

Quizplus · Accepted Answer

Time series analysis is the forecasting technique that uses past data to predict future values. In this scenario, the manager is analyzing the sales data for the past five years to predict next year's sales, which is an example of time series analysis. Regression models and economic indicators also involve analyzing past data, but they are not explicitly mentioned in the scenario. Substitution effect and jury of opinion are not relevant to forecasting techniques.

Refer to the Scenario Below to Answer the Following Questions