Asked by Maddi Coones on Apr 25, 2024
Verified
The goal of any forecasting method is to predict the systematic component of demand and estimate the random component.
Systematic Component
Refers to the portion of variation or movement in a data set or statistical model that can be directly attributed to identifiable, predictable, and quantifiable factors.
Random Component
A variable within a statistical model that introduces uncertainty or randomness, affecting the outcome or predictions of the model.
- Gain insight into applying several forecasting methodologies, including moving averages, causal methods, and time series analysis.
Verified Answer
JD
Jesus Delgado8 days ago
Final Answer :
True
Explanation :
The systematic component of demand is the predictable and consistent portion of demand, while the random component is the unpredictable and inconsistent portion. Therefore, the goal of forecasting is to accurately predict the systematic component and estimate the random component.
Learning Objectives
- Gain insight into applying several forecasting methodologies, including moving averages, causal methods, and time series analysis.
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