Which One of the Following Statements About Forecasting Is False

question 35

Multiple Choice

Which one of the following statements about forecasting is False?

• A) The method for incorporating a trend into an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean, one for the trend, and one for the error.
• B) The cumulative sum of forecast errors (CFE) is useful in measuring the bias in a forecast.
• C) The standard deviation and the mean absolute deviation measure the dispersion of forecast errors.
• D) A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time.

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Definitions:

Conform

To align behaviors, attitudes, or beliefs with those of a group, often to fit in or comply with norms.

Break Norms

The act of violating established social rules, standards, or expectations in a particular context.

Free Floating

A state of being unattached or not committed to any particular course of action or thought, often allowing for greater adaptability.

Maypole

A traditional pole, often used in folk festivals, around which dances are performed; symbolically, it can refer to a central communication structure in group dynamics.