Which of the following statements about time-series forecasting is true?
A)It is always based on the assumption that future demand will be the same as past demand.
B)It makes extensive use of the data collected in the qualitative approach.
C)It is based on the assumption that the analysis of past demand helps predict future demand.
D)Because it accounts for trends,cycles,and seasonal patterns,it is always more powerful than associative forecasting.
E)All of the above are true.

Question

Quizplus · Accepted Answer

Time-series forecasting is based on the idea that past demand can help predict future demand. It uses historical data to identify patterns, trends, and seasonal variations to predict future demand. It does not always assume that future demand will be the same as past demand (A), does not heavily rely on qualitative data (B) and is not always more powerful than associative forecasting (D).

Which of the Following Statements About Time-Series Forecasting Is True