Which One of the Following Statements About Forecasting Is FALSE

question 104

Multiple Choice

Which one of the following statements about forecasting is FALSE?

• A) The method for incorporating a trend in an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean, one for the trend, and one for the error.
• B) The cumulative sum of forecast errors (CFE) is useful in measuring the bias in a forecast.
• C) The standard deviation and the mean absolute deviation measure the dispersion of forecast errors.
• D) A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time.

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Definitions:

Predictors of Future Behaviour

Variables or indicators used to forecast an individual's future actions based on past or present data.

Behavioural Intentions

An individual's stated likelihood or planned effort to perform a specific behavior in the future.

Drug Testing

The practice of testing employees for the use of illegal substances or abuse of prescription medications, typically as a condition of employment or safety protocol.

Bona Fide Occupational Requirement

A legitimate, non-discriminatory requirement for a specific job, used to determine an individual's suitability based on task-related criteria.