A common way of incorporating cyclical variations in the forecast is through use of
A) trend line estimation
B) seasonal adjustment
C) linear regression using a correlated leading variable as the independent variable
D) linear regression using a correlated leading variable as the dependent variable
E) government issued statistics and projections

Question

Quizplus · Accepted Answer

Cyclical variations are often incorporated into forecasts using linear regression with a correlated leading variable as the independent variable, as it helps predict future values based on the cyclical patterns observed in the leading variable.

A Common Way of Incorporating Cyclical Variations in the Forecast