APICS Certified Supply Chain Professional (CSCP) — Question 109

Using new housing construction data as a predictor of construction equipment sales is an example of what type of forecasting method?

Answer options

• A. Causal
• B. Time series
• C. Judgement
• D. Market survey

Correct answer: A

Explanation

The correct answer is A, Causal, because this method involves using one or more independent variables to predict a dependent variable, in this case, construction equipment sales based on housing construction data. The other options are incorrect as Time series focuses on historical data trends, Judgement relies on expert opinion, and Market survey gathers consumer insights rather than using direct causal relationships.