Which of the Following Forecasting Methodologies Is Considered a Causal

question 58

Multiple Choice

Which of the following forecasting methodologies is considered a causal forecasting technique?

• A)Market research
• B)Historical analogy
• C)Delphi Method
• D)Input/output models
• E)Simulation

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Definitions:

Target Cash Balance

A firm’s desired cash level as determined by the trade-off between carrying costs and shortage costs.

Cost of Borrowing

The total amount of money that a borrower pays to secure a loan, including interest, fees, and any other charges.

Miller-Orr Model

A financial model that helps in managing cash flows and cash reserves of firms, focusing on maintaining an optimal balance level.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period, reflecting the cost of borrowing or the gain on savings.