Which One of the Following Statements About Forecasting Is FALSE

question 54

Multiple Choice

Which one of the following statements about forecasting is FALSE?

• A) To achieve the objective of developing a useful forecast from the information at hand, the forecaster must select the appropriate technique. This choice sometimes involves a trade-off between forecast accuracy and cost.
• B) Three general types of forecasting techniques are used for demand forecasting: time series analysis, causal methods, and judgment methods.
• C) Time series express the relationship between the factor to be forecast and related factors, such as promotional campaigns, economic conditions, and competitor actions.
• D) A time series is a list of repeated observations of a phenomenon, such as demand, arranged in the order in which they actually occurred.

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Definitions:

Maturity Value

The amount payable to an investor at the maturity date of an investment, including principal and interest.

Investment

Allocation of resources, usually money, in the expectation of generating an income or profit.

Maturity Value

The amount payable to the holder of a financial instrument at the end of its term, including both the principal and interest.

Investment

Investment refers to the act of allocating resources, usually money, with the expectation of generating an income or profit.