Which of the following forecasting methodologies is considered a causal forecasting technique?
A)Linear regression
B)Market research
C)Historical analogy
D)Moving average

Question

Quizplus · Accepted Answer

Causal forecasting techniques consider the cause-and-effect relationship between the variable being forecasted and other relevant factors, such as economic indicators, marketing activities or weather conditions. Linear regression is a widely used method for modeling the relationship between the dependent variable and one or more independent variables, and for predicting future values based on this relationship. Market research and historical analogy are typically considered qualitative forecasting techniques, while moving average is a time series forecasting method that does not incorporate causal factors.

Which of the Following Forecasting Methodologies Is Considered a Causal