What Forecasting Technique Assumes That One or More Factors Are

question 52

Multiple Choice

What forecasting technique assumes that one or more factors are related to demand and that this relationship can be used to estimate future demand?

• A)Exponential smoothing
• B)Judgmental
• C)Cause and effect
• D)Time series

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Definitions:

Substitute Goods

Products or services that can be used in place of one another, fulfilling the same needs or wants of the consumer.

Normal Goods

Goods for which demand increases as the income of the consumer increases, exhibiting a direct relationship between income and demand.

Complementary Goods

Goods that are typically consumed together, such that the demand for one increases when the price of the other decreases.

Substitute Goods

Goods that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.