1.The correct answer is : The same as good production
Abnormal losses are valued at the same unit rate as good production, so that their occurrence does not affect the cost of good production.
2.The correct answers are :The trend must continue as in the past and The same pattern of seasonal variation must continue as in the past
Provided the multiplicative model is used, it does not matter if the trend is increasing or decreasing.
Forecasts are made on the assumption that the previous trend will continue.
In general, extrapolation does not produce reliable estimates but in forecasting the future using time series analysis we have no option but to extrapolate.
Forecasts are made on the assumption that previous seasonal variations will continue.
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