Time-series analysis is based on the assumption that
A) random error terms are normally distributed.
B) there are dependable correlations between the variable to be forecast and other independent variables.
C) past patterns in the variable to be forecast will continue unchanged into the future.
D) the data do not exhibit a trend.

Question

Quizplus · Accepted Answer

Time-series analysis assumes that past patterns in the variable to be forecast will continue unchanged into the future. This is fundamental to making predictions based on historical data.

Time-Series Analysis Is Based on the Assumption That