All of the following are true about time series methods except A) They discover a pattern in historical data and project it into the future. B) Their forecasts are based solely on past values of the variable or past forecast errors. C) They involve the use of expert judgment to develop forecasts. D) They assume that the pattern of the past will continue into the future.
AnswerAnswer: C. They involve the use of expert judgment to develop forecasts.
Explanation: Time series forecast mostly involve the quantitative factors such as demand in the past periods. They use the historical data to derive the patterns to predict the future events or demands. The past values related to the variables are considered along with the forecast error to predict the future. In time series methods, the past events are tracked and the same pattern is expected to follow in the future. In time-series analysis, expert judgement will not be considered because it is more of subjective than to derive from the past.