Exam CSCP topic 1 question 128 discussion

A. Casual

Answer is A: Casual - The causal forecasting method involves using cause-and-effect relationships to predict future outcomes. In this case, using new housing construction data as a predictor for construction equipment sales implies that changes in housing construction activity may directly impact equipment sales. By analyzing historical patterns and understanding how these variables influence each other, companies can make informed predictions about equipment demand. (The difference between methods) Market survey (a tool) involves gathering data directly from potential customers, industry experts, or market research to predict future demand. By surveying target audiences, companies can assess preferences, intentions, and trends, which inform sales forecasts. It’s a valuable approach for understanding customer needs and market dynamics.

D: since it is a new housing so there is no historical data so need a market survey

Causal forecasting methods involve identifying and using key factors or variables that are believed to influence the variable being forecasted

The answer should be A. A market survey is gathering information from the market. -> direct demand Causal forecasting is deriving demand from different variables. In this example, it is the insights gained from the data.

I think it is D, Market survey they are studying new home sales construction data which is kind of market survey