A Direct Forecast Involves Estimating the Value to Be Forecast

question 23

Multiple Choice

A direct forecast involves estimating the value to be forecast and

• A) making decisions without any intervening steps.
• B) halving the highest values and doubling the lowest values to determine an acceptable forecast range.
• C) selecting the alternative that holds the greatest consensus within the management team.
• D) then conducting a sensitivity analysis to determine price elasticity.
• E) selecting the forecasting alternative that would allow a firm to survive financially even if the forecasts are incorrect.

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Definitions:

Modeling

A method used in various fields to create a representation of a system or process, or in psychology, the process of learning by observing and imitating others.

Punishment

A consequence imposed for a violation of rules or norms, intended to discourage undesirable behavior.

Shaping

A method of conditioning by which successive approximations of a desired behavior are reinforced.

Natural Laws

Fundamental principles that govern the natural world, often described through physics and other sciences.