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1.Which TWO of the following are necessary if forecasts obtained from a time series analysis are to be reliable?
A.The trend must not be increasing or decreasing
B.The trend must continue as in the past
C.Extrapolation must not be used
D.The same pattern of seasonal variation must continue as in the past
(2 marks)
2.Under which of the following circumstances would a multiplicative model be preferred to an additive model in time series analysis?
A, When a model easily understood by non-accountants is required
B.When the trend is increasing or decreasing
C.When the trend is steady
D.When accurate forecasts are required