In which of the following cases is it MOST important to use an adaptive forecast?

Question

BlackTom AI · Accepted Answer

The question asks: In which of the following cases is it MOST important to use an adaptive forecast?

Since the provided answer options are not listed, we can only reason about the single given answer and the general concept involved.

The offered option states: 'New data shows that the underlying level of demand may have changed and it needs to be incorporated into the forecast.' This aligns with the core purpose of adaptive forecasting: when new information suggests that the baseline level, trend, seasonality, or other underlying drivers of demand have shifted, the forecast should adapt to reflect that change. In other words, if the data indicate a structural break or a meaningful revision in demand patterns, an adaptive forecast helps maintain accuracy by updating parameters in response to evidence.

From a conceptual standpoint, adaptive forecasting methods (e.g., updating models with recent observations, giving more weight to new data, or re-estimating components) are most critical precisely when the underlying process has changed, rather than when data are stable.

If we imagine typical alternative scenarios (even though they aren’t provided here), one would expect less need for adaptation when data are stable and align with the current model, or when forecast accuracy is already satisfactory and changes are expected to be negligible. The contrast makes the stated option sensible as the moment to apply adaptation.

However, because no other answer choices are displayed, we cannot evaluate how other scenarios would argue for or against adaptive forecasting in this specific question. The reasoning rests on the general principle: adapt forecasts when new data reveal a potential change in the underlying demand level so that forecasts remain responsive and accurate.

In summary, the given option correctly identifies a key trigger for adaptive forecasting: the emergence of new data suggesting a changed underlying demand level that warrants updating the forecast. The absence of additional options prevents a comparative evaluation of other cases, which would normally accompany this question.

SP25-BL-BUS-P481-5624 03. Adaptive Forecasting

In which of the following cases is it MOST important to use an adaptive forecast?

View Explanation

Log in for full answers

Similar Questions

If a forecast consistently overestimates demand, what might happen?

Question at position 2 Which of the following best describes long-term planning?Highly detailed, specific, and reactiveFocused on individual customers or itemsCentrally concerned with adjusting daily tasksFocused on forecasting aggregated demand

In these slides, why do we build a distribution from A/F ratios to be used in computing Q*?

Which of the following sequence is correct?

What HRM activity would a manager perform to define staffing needs to meet future production goals?

Demand forecasting is an important component of a manufacturing company’s demand-supply management. The accuracy of the demand forecasts for all their lines of products:

Question at position 11 The process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services is known as?Cause and EffectTime SeriesDemand PlanningForecasting

Question at position 9 The process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services is known as Collaborative Planning, Forecasting, and ReplenishmentTrueFalse

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler