Which of the Following Statements Is FALSE

question 3

Multiple Choice

Which of the following statements is FALSE:

• A)Time Series forecasting is based on the assumption that the future is an extension of the past
• B)Cause-and-Effect forecasting assumes that one or more factors are related to demand and,therefore,can be used to predict future demand
• C)All quantitative methods become less accurate as the forecast's time horizon increases
• D)It is generally not recommended to use a combination of both quantitative and qualitative methods

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Definitions:

PI

A mathematical constant representing the ratio of a circle's circumference to its diameter, approximately 3.14159.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment.

Initial Cost

The initial expenditure needed to acquire an asset or initiate a project, encompassing purchase price and any other costs necessary to get the asset ready for use.