Trend forecasting methods including the percentage rate of change and the unit rate of change:
A) are widely used by managers.
B) can produce large forecasting errors when sales change direction.
C) are relatively easy to use.
D) are often combined to improve moving average and exponential smoothing forecasts.
E) All of the above.

Question

Quizplus · Accepted Answer

Trend forecasting methods like the percentage rate of change and the unit rate of change are indeed widely used by managers due to their ease of use. However, they can produce large forecasting errors when there's a change in the direction of sales. Additionally, these methods are often combined with others, such as moving average and exponential smoothing forecasts, to improve accuracy.

Trend Forecasting Methods Including the Percentage Rate of Change and the Unit