Which One of the Following Statements About Forecasting Is TRUE

question 163

Multiple Choice

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 designed particularly for situations when 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.

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Definitions:

Short-Term Financing

A type of funding intended to meet immediate and temporary financial needs of a business.

Corporate Debt Securities

Financial instruments issued by corporations to borrow money from investors.

Security Sold Privately

A financial instrument, such as a stock or bond, that is sold directly to investors rather than through a public market.

Directly

Pertains to having an immediate connection or interaction without any intermediaries.