Question 8

A naive forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

True or False

Question 9

Which one of the following statements about forecasting is FALSE?

A. A Time series express the relationship between the factor to be forecast and related factors such as promotional campaigns, economic conditions, and competitor actions.

B.A time series is a list of repeated observations of a phenomenon, such as demand, arranged in the order in which they actually occurred.

C. Three general types of forecasting techniques are used for demand forecasting: time-series analysis, causal methods, and judgment methods.

D. Causal methods of forecasting use historical data on independent variables (promotional campaigns, competitors' actions, etc.) to predict demand.

Question 10

A weary traveler shows up at a hotel desk at midnight without a reservation. The desk clerk informs him that there is a room available, but sadly it is marked up 80% higher than the usual price. This is an example of promotional pricing.

True or False