Forecasting Basics

A statement about the current value of a variable of interest

A statement about the future value of a variable of interest (correct)

A statement about the past value of a variable of interest

A statement about the hypothetical value of a variable of interest

Trend analysis and seasonal variation

Expected level of supply and accuracy

Accuracy and precision

Expected level of demand and accuracy (correct)

Techniques assume some underlying causal system that existed in the past will persist into the future (correct)

Forecasts for individual items are more accurate than those for groups of items

Forecasts are always perfect

Forecast accuracy increases as the forecasting horizon increases

<p>The forecasting horizon increases</p> Signup and view all the answers

<p>Because random variation is always present, there will always be some residual error, even if all other factors have been accounted for.</p> Signup and view all the answers