When Using Extrapolation to Forecast

question 22

Multiple Choice

When using extrapolation to forecast,

• A)a time series of past observations is used.
• B)there is a large error term in the results.
• C)predictions can only be made about the future.
• D)dummy variables can skew the results.

---

Definitions:

Competitive Advantage

The unique attributes or capabilities a company has that enable it to outperform its competitors, leading to greater sales or margins.

Defined

Clearly characterized or determined; having a precise meaning.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as superior quality, cost advantages, or innovative features.

Short-term Investment

An investment held for less than twelve months before being sold or converted to cash.