Which of the following is true of statistical forecasting methods that capture historic trends?

• A. They assume that all future events are completely random and unrelated to the past.
• B. They ignore historical data and focus only on expert judgment.
• C. They are only useful when there is no available data.
• D. They rely on past data patterns to predict future outcomes.

Answer: (D)

Verified step by step guidance

1. Understand that statistical forecasting methods that capture historic trends use past data to identify patterns or trends over time.
2. Recognize that these methods assume future values are related to past observations, meaning the future is not completely random but influenced by historical data.
3. Note that such methods do not ignore historical data; instead, they depend heavily on it to make predictions.
4. Acknowledge that these methods are useful when historical data is available, as they analyze this data to forecast future outcomes.
5. Conclude that the correct statement is: 'They rely on past data patterns to predict future outcomes,' because this reflects the fundamental principle of trend-based statistical forecasting.