One Simple Way to Forecast Is to Take the Average

question 29

True/False

One simple way to forecast is to take the average demand for the last three or six periods and use that figure as the forecast for the next period.

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Definitions:

3rd Quartile

A value below which 75% of the data points in a dataset fall.

Negatively Skewed Distribution

A probability distribution that is characterized by a long tail on the left side, indicating that the bulk of the values are concentrated to the right.

Smallest Observation

The lowest value recorded in a data set.

1st Quartile

The value below which 25% of the data points in a dataset fall, indicating the lower quarter of the data.