Certified Supply Chain Professional (CSCP) Practice Exam

Which statement best describes a dependent variable in forecasting?

1. It is the variable that affects the predictor

2. It is the variable being studied or measured

3. It is the factor that remains constant

4. It is unrelated to any external factors

The correct answer is: It is the variable being studied or measured

The description of a dependent variable in forecasting is best captured by stating that it is the variable being studied or measured. In the context of forecasting, the dependent variable represents the outcome that researchers or analysts aim to predict based on various independent factors or predictors. For example, in sales forecasting, the dependent variable could be the sales revenue, which is influenced by other factors such as pricing, marketing efforts, and seasonality. Understanding this relationship is crucial in forecasting because it helps analysts determine how changes in the independent variables can impact the dependent variable, thereby enabling better predictions and decision-making. The ability to accurately identify and assess the dependent variable is fundamental for effective analysis in supply chain management and other fields.