When a Trucking Firm Uses the Number of Shipments for January

question 24

True/False

When a trucking firm uses the number of shipments for January of the previous year as the forecast for January next year, it is using a naïve forecasting model.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted as alpha and used as a threshold for determining statistical significance.

Null Hypotheses

A statistical hypothesis that assumes no significant difference or effect exists within a set of given observations.

Type I Error

The error that occurs when a null hypothesis is incorrectly rejected when it is actually true, often referred to as a "false positive."

Type II Error

The statistical mistake of failing to reject a false null hypothesis. It's also known as the error of accepting a false negative result.