Certified Supply Chain Professional (CSCP) Practice Exam

What is the element being predicted in associative forecasting called?

1. Dependent variable

2. Independent variable

3. Predictor variable

4. Forecasting variable

The correct answer is: Dependent variable

In associative forecasting, the element being predicted is referred to as the dependent variable. This is because it is directly influenced by other variables that serve as predictors. The dependent variable represents the outcome or the main focus of the forecasting model, which relies on the relationships established through the independent or predictor variables. In associative forecasting, analysts utilize historical data to identify correlations between the dependent variable and one or more independent variables. This statistical relationship enables the prediction of future values of the dependent variable based on changes or values of the independent variables. Understanding this connection is essential for effective forecasting and planning in supply chain management. The other terms in the choices represent different concepts. The independent variable is the one manipulated or varied to observe its effect on the dependent variable. Predictor variable also refers to those variables independent of the dependent variable that can be used to predict outcomes. Forecasting variable, while it may seem appropriate, is not a standard term used in this context.