Which one of the following statements about the patterns of a demand series is FALSE?
A. The five basic patterns of most business demand series are the horizontal, trend, seasonal, cyclical, and random patterns.
B. Estimating cyclical movement is difficult. Forecasters do not know the duration of the cycle because they cannot predict the events that cause it.
C. The trend, over an extended period of time, always increases the average level of the series.
D. Every demand series has at least two components: horizontal and random.
Answer:C
Which one of the following statements about the patterns of a demand series is FALSE?
A. The five basic patterns of most business demand series are the horizontal, trend, seasonal, cyclical, and random patterns. B. Estimating cyclical movement is difficult. Forecasters do not know the duration of the cycle because they cannot predict the events that cause it. C. The trend, over an extended period of time, always increases the average level of the series. D. Every demand series has at least two components: horizontal and random.