Describe the Three Forecasting Time Horizons and Their Use

question 94

Essay

Describe the three forecasting time horizons and their use.

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Definitions:

Promotional Efforts

Activities and campaigns designed to increase awareness or sales of a product or service, typically involving advertising and marketing tactics.

Six-month Moving Average

A method of smoothing data by calculating the average of six consecutive months' worth of data, continuously updated month by month.

Mean Absolute Deviation

A statistical measure of the average absolute deviations of a set of values from their mean, indicating variability within the dataset.

Forecast Error

The difference between the actual outcomes and the predictions made by forecasting models.