Forecasting Quiz

What you'll be asked

1. Which of the following best describes a 'trend' in data analysis?
2. You are analyzing monthly ice cream sales and notice a consistent increase every July for the past five years. What type of pattern is this?
3. When forecasting future demand, why is it important to identify and remove outliers from your historical data?
4. If your forecasting model shows a high degree of 'residual error,' what does this suggest about your model?
5. You are applying a moving average to a volatile dataset. If you increase the window size (e.g., from a 3-month moving average to a 12-month moving average), what is the expected result?

Answers and explanations come after you submit.