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.

---

Definitions:

Alderfer's Existence Needs

A component of Clayton Alderfer's ERG theory, focusing on the basic physical and material well-being requirements akin to Maslow's physiological and safety needs.

Maslow's

Relating to the hierarchy of needs theory developed by Abraham Maslow, which posits that human motivations are influenced by a progression of needs, starting from basic survival needs up to self-actualization.

Physiological Needs

Basic physical requirements for human survival, such as food, water, shelter, and clothing, that are essential to maintaining life.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's own potential and self-fulfillment.