Question

10. Let D represent the demand, μ be the average demand, and be a random error, such that ε ~ N(0, σ), where σ represents the
0 0
Add a comment Improve this question Transcribed image text
Answer #1

10.

Option A is correct.

Because for forecasting we absolutely need to find the constant (time-invariant) component in the series, otherwise, it's impossible to forecast by definition. Stationarity is just a particular case of the invariance. Only option A satisfies this condition.

Please upvote if you have liked my answer, would be of great help. Thank you.

Add a comment
Know the answer?
Add Answer to:
10. Let D represent the demand, μ be the average demand, and be a random error, such that ε ~ N(0...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT