The Forecasting Technique That Works Best for Short Planning Horizons

question 56

Multiple Choice

The forecasting technique that works best for short planning horizons is _____.

• A) regression
• B) moving average
• C) mean absolute percentage error (MAPE)
• D) Delphi

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Definitions:

SS(Total)

The total sum of squares in an analysis of variance, representing the total variation in the data.

SS(Blocks)

Sum of Squares due to Blocks, a term used in analysis of variance (ANOVA) to quantify variability among different blocks or groups in an experimental design.

Blocked Experiment

An experimental design in which units are grouped (blocked) based on similar characteristics before being randomly assigned to treatments, to reduce variation.

Fixed-Effects ANOVA

A variation of ANOVA where only factors that are fixed (non-random) are considered in the analysis.