A company has an unbiased forecast for its demand. What does that mean?a. All forecast errors are equal to zero.b. All forecast errors are less than 1 percent.c. The average of all forecast errors is zero.d. The standard deviation of forecast errors is zero.

A company has an unbiased forecast for its demand. What does that mean?a. All forecast errors are equal to zero.b. All forecast errors are less than 1 percent.c. The average of all forecast errors is zero.d. The standard deviation of forecast errors is zero.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

A company has an unbiased forecast for its demand. What does that mean?
a. All forecast errors are equal to zero.
b. All forecast errors are less than 1 percent.
c. The average of all forecast errors is zero.
d. The standard deviation of forecast errors is zero.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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