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DA0-001 · Question #525

A group is developing a time-series forecast for future sales. Which of the following is the best way to show possible values for future eras?

The correct answer is D. Confidence interval. A confidence interval provides a range of possible values for future sales in a time-series forecast, showing the uncertainty and reliability of the prediction.

Data Analysis

Question

A group is developing a time-series forecast for future sales. Which of the following is the best way to show possible values for future eras?

Options

  • AStandard deviation
  • BPercent change
  • CDistribution
  • DConfidence interval

How the community answered

(36 responses)
  • A
    3% (1)
  • B
    3% (1)
  • C
    8% (3)
  • D
    86% (31)

Explanation

A confidence interval provides a range of possible values for future sales in a time-series forecast, showing the uncertainty and reliability of the prediction.

Topics

#Time-series forecasting#Forecasting uncertainty#Confidence interval

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