If the firm uses last ten years' data to forecast demand, the major economic risk involved is:

CA Foundation · Business Economics · MTP · January 2026
If the firm uses last ten years' data to forecast demand, the major economic risk involved is:
(A) A. Sampling bias
(B) B. Structural break in demand pattern
(C) C. Measurement error
(D) D. Price elasticity instability

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Structural break in demand pattern

Topics: Nature & Scope of Business Economics

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