Which of the following statements generally describe forecasts?
A)Sophisticated forecasting packages produce exact forecasts.
B)Forecasts get worse the farther into the future they go.
C)Individual products are easier to forecast than aggregated products.
D)Forecasts should be used for products with dependent demand.
E)Business forecasts are generally correct.

Question

Quizplus · Accepted Answer

Forecasting individual products is usually easier than forecasting aggregated products because individual products tend to have more predictable demand patterns.

Answer: B 
 Forecasts tend to become less accurate the farther into the future they predict.

Answer: D 
 Forecasts are most helpful for products with dependent demand, meaning that demand for the product is influenced by the demand for other products or services.

Therefore, the correct choices are B, C, and D.

Which of the Following Statements Generally Describe Forecasts