All of the Following Are True About Time Series Methods

question 25

Multiple Choice

All of the following are true about time series methods except

• A) They discover a pattern in historical data and project it into the future.
• B) They involve the use of expert judgment to develop forecasts.
• C) They assume that the pattern of the past will continue into the future.
• D) Their forecasts are based solely on past values of the variable or past forecast errors.

---

Definitions:

Society's Perspective

A viewpoint considering the collective interests, welfare, and impact on the wider community or society as a whole.

Last Unit

Refers to the final unit produced or consumed, often used in economic analysis to assess marginal utility or cost.

Allocative Efficiency

A state of the economy in which production represents consumer preferences and goods and services are distributed optimally according to the needs and desires of society.

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the actual amount they spend, indicating the advantage to consumers.