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The demand for chocolates is probably highly seasonal, one would expect demand to spike for certain holidays such as Valentine's Day, Halloween, and Christmas.
5. Why should a manager be suspicious if a forecaster claims to forecast historical demand without any forecast error?
The primary difficulty with such a claim is that forecasts are always wrong, hence, an estimate of error should be provided with the forecast...
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Given a set of data, it is possible to create a forecasting model that is 100% accurate, but such a model would contain ridiculous cubic, quartic, and possibly higher-order terms. The model would work only on that data set and would be unwieldy, to put it mildly.
6. Give examples of products that display seasonality of demand...
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