________ forecasting methods assume that the demand forecast is highly correlated with certain factors in the environment (the state of the economy,interest rates,etc. ).
A)Qualitative
B)Time-series
C)Causal
D)Simulation

Question

Quizplus · Accepted Answer

Causal forecasting methods assume that there is a cause-and-effect relationship between the demand for a product or service and certain environmental factors. These factors could be the state of the economy, interest rates, demographic changes, etc. Causal methods use statistical techniques to identify the relationship between the demand and the factors affecting it, and then create a forecast based on the expected values of those factors. Therefore, causal methods are the best choice for forecasts that are highly correlated with specific environmental factors.

________ Forecasting Methods Assume That the Demand Forecast Is Highly