What is generally seen as a strong advantage of the time series forecasting method? a. Econo...
What is generally seen as a strong advantage of the time series forecasting method?
| a. |
Economic recessions and competitor actions can cause sales figures to rapidly change |
|
| b. |
Dynamic market forces can cause trends to change, which can affect time series forecasts |
|
| c. |
Used as a “sanity check” to confirm accuracy of more sophisticated forecasting methods |
|
| d. |
Short-term fluctuations (noise) can be present in the raw sales data |
Homework Answers
Option c.
Time series model carries trend, seasonality and a base level sales figure which helps to compare with the other models with respect to trend and seasonality.
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