It is important to question the reliability of forecasts because

A. the growth new industries, such as that of telecommunications, cannot be predicted.
B. uncertainty is black and white, and therefore the gray areas are unimportant.
C. if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity.
D. underestimating uncertainty can lead to good competitive strategies.


Answer: C

Business

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