Which One of the Following Statements About Forecasting Is True

question 145

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 particularly appropriate for situations in which 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:

Cumulative Net Profit

The total net profit of an entity over a period, accumulating all the net profits and losses from each period within the timeframe.

Fourth Year

Usually refers to the final year of a four-year educational program, such as a high school or university degree.

Probability

The likelihood of a specific event or outcome occurring, expressed on a scale from 0 (impossible) to 1 (certain).

Cumulative Profit

Cumulative profit is the total sum of profit earned over a period of time.