XYZ Company, Annual Data Based on the information given in the table above, we can conclude that, in general,
A) the forecasting method is underestimating demand.
B) the forecasting method is overestimating demand.
C) we cannot determine whether the predictions are underestimating or overestimating demand.

Question

XYZ Company, Annual Data  Based on the information given in the table above, we can conclude that, in general,
A) the forecasting method is underestimating demand. 
B) the forecasting method is overestimating demand. 
C) we cannot determine whether the predictions are underestimating or overestimating demand.

Quizplus · Accepted Answer

Each value of the forecasted demand is above the actual demand, so the forecast is overestimating.

XYZ Company, Annual Data Based on the Information Given