Which one of the following statements about forecasting is TRUE?
A)The five basic patterns of demand are the horizontal,trend,seasonal,cyclical,and the subjective judgment of forecasters.
B)Judgment methods are particularly appropriate for situations in which historical data are lacking.
C)Casual methods are used when historical data are available and the relationship between the factor to be forecast and other external and internal factors cannot be identified.
D)Focused forecasting is a technique that focuses on one particular component of demand and develops a forecast from it.

Question

Quizplus · Accepted Answer

Judgment methods, such as expert opinion or market research, are useful when historical data is lacking or inadequate. Casual methods, on the other hand, are used when historical data is available, but the relationships between the factors to be forecasted and other internal or external factors cannot be identified. The five basic patterns of demand are horizontal, trend, seasonal, cyclical, and random. Focused forecasting is a technique that involves developing a forecast for a specific component of demand, such as a particular product or customer segment.

Which One of the Following Statements About Forecasting Is TRUE