5 Questions
What is a forecast?
A statement about the future value of a variable of interest
What are two important aspects of forecasts?
Expected level of demand and accuracy
What is a common feature of all forecasts?
Techniques assume some underlying causal system that existed in the past will persist into the future
What does forecast accuracy decrease as?
The forecasting horizon increases
Why are forecasts not perfect?
Because random variation is always present, there will always be some residual error, even if all other factors have been accounted for.
Learn the fundamentals of forecasting, including the importance of forecasts, aspects of forecasts such as expected demand and accuracy, and the various uses of forecasts in planning and decision-making.
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