Which of the Following Statements About Forecasting Is NOT True

question 58

Multiple Choice

Which of the following statements about forecasting is NOT true?

• A) Highly sophisticated quantitative approaches to forecasting still require interpretation.
• B) Forecasts are always subject to error and should be treated with caution.
• C) Forecasting always relies on human judgement.
• D) Forecasting is an effective and efficient substitute for planning.
• E) Forecasting is a planning tool.

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Definitions:

CPI

The Consumer Price Index reflects the mean fluctuation in prices for a mix of consumer products and services, as experienced by urban buyers over time.

Inflation Rate

The increase percentage in the overall level of prices for goods and services in a country's economy over a period of time.

CPI

This index tracks the overall price changes of a mix of consumer products and services like healthcare, transportation, and food by calculating their weighted average price.

Inflation Rate

A measure reflecting how much prices of goods and services have increased in a given period, reducing the purchasing power of money.