Answer:
C.
Explanation:
A forecast is an estimate of the future level of some variable.
It is important to forecast because:
-Asses long-term capacity needs
-Develop budgets, hiring plans
-Plan production or order materials
There are types of forecast
Demand, depend on the firm level or the market level.
Supply, depend on number of current producers and suppliers, projected aggregate supply levels, and technological and political trends.
Price, depend on cost of supplies and services, market price for firm´s product or service.
There are 4 laws of forecasting, that help to avoid misapplication or misrepresentation of forecast results:
1-Forecast are almost always wrong by some amount (but they are still useful). Even under the best of conditions, no forecasting approach can predict the exact level of future demand, supply, or price.
2-Forecast for the near term tend to be more accurate. This law recognizes that in the near term, the factors that affect the forecast variable are not likely to change greatly.
3-Forecast for group of products or services tend to be more accurate. Many businesses have found that it is easier and more accurate to forecast for groups of products or services than it is to forecast for specific ones.
4-Forecast are no substitute for calculated values.
