When Selecting a Forecasting Method,which of the Following Is True

question 45

Multiple Choice

When selecting a forecasting method,which of the following is true?

• A) The method with the best fit to historical data (least error) is the best predictive model.
• B) The existence of complicated data patterns will affect the method chosen.
• C) Stable data patterns over time are best suited to qualitative methods.
• D) Time series methods use qualitative data to smooth the forecasts.

---

Definitions:

Tax Rate

The percentage of income that is paid to the government as tax.

Net Income

The amount of profit a company has left after all expenses, taxes, and costs have been subtracted from total revenue.

Net Working Capital

The difference in a company’s readily available assets versus its current financial obligations, marking its short-term economic status.