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

question 105

Multiple Choice

Which of the following statements about time-series forecasting is true?

• A) It is 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.

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Definitions:

Residuals

The differences between observed and predicted values in a regression analysis, indicating the error in predictions.

Regression Analysis

Regression analysis is a statistical method for estimating the relationships among variables, often used to predict the outcome of one variable based on the value(s) of another.

Crime Rates

A measure of the number of crimes committed per unit of population or geographic area within a specific period.

Cases

Instances or examples of a phenomenon being studied.