Time-series forecasting models:

a) are useful whenever changes occur rapidly and wildly
b) are more effective in making long-run forecasts than short-run forecasts
c) are based solely on historical observations of the values of the variable being forecasted
d) attempt to explain the underlying causal relationships which produce the observed outcome
e) none of the above

The answer is: C) are based solely on historical observations of the values of the variable being forecasted

Explanation:

Time-series forecasting models are used to predict events through a sequence of time.

This forecasting technique predicts future events by analyzing past trends. They assume that future events will hold similar trends to historical events. There are several uses for this technique including econometrics, statistics, control engineering, pattern recognition, etc.

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