If a Time Series Plot Exhibits a Horizontal Pattern, Then

question 20

Multiple Choice

If a time series plot exhibits a horizontal pattern, then

• A)it is evident that the time series is stationary.
• B)the data fluctuates around the variable mean.
• C)there is no relationship between time and the time series variable.
• D)there is still not enough evidence to conclude that the time series is stationary.

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Definitions:

Forecast Errors

The difference between forecasted values and the actual values that occur, indicating the accuracy of forecasting methods.

Aggregate Plans

Aggregate plans are company-wide plans that are laid out for production, inventory levels, and workforce size to meet fluctuating demand in the most cost-effective manner.

Capacity

Refers to the maximum level of output that a company can sustain to make a product or provide a service.

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.