One aspect of demand that makes every forecast inaccurate is:
A) trend variation.
B) random variation.
C) cyclical variation.
D) seasonal variation.

Question

Quizplus · Accepted Answer

Random variation is the unpredictable fluctuation in demand that cannot be attributed to any known cause or factor. Therefore, it is impossible to accurately forecast and it will always be present, making every forecast at least somewhat inaccurate. Trends, cyclical and seasonal variations can be identified and forecasted to some extent, but random variation is always present and adds to the overall margin of error in a forecast.

One Aspect of Demand That Makes Every Forecast Inaccurate Is