An automobile company is trying to forecast demand for minivans over the next 10 years.Which method of forecasting are they most likely to use?
A)Regression trend models
B)Moving averages
C)Delphi method
D)Simple exponential smoothing
E)Naïve method

Question

Quizplus · Accepted Answer

Regression trend models are often used for long-term forecasting as they can identify trends and patterns in historical data to make predictions for the future. This would be the best choice for the automobile company to forecast demand for minivans over the next 10 years. Option B) Moving averages may not be suitable for long-term forecasting and options C), D) and E) are not as precise and do not consider past trends and patterns in data.

An Automobile Company Is Trying to Forecast Demand for Minivans