The use of quarterly data to develop the forecasting model Y_t = a +bY_t₋₁ is an example of which forecasting technique? A) Barometric forecasting B) Time-series forecasting C) Survey and opinion D) Econometric methods based on an understanding of the underlying economic variables involved E) Input-output analysis

Question

Quizplus · Accepted Answer

The use of quarterly data and the mathematical formula provided indicates that the forecasting technique being used is time-series forecasting, which involves analyzing past trends in data to identify patterns and make predictions about future trends.

The Use of Quarterly Data to Develop the Forecasting Model