What Is the Major Limitation of the Direct-Derivation Method for Demand

Multiple Choice

What is the major limitation of the direct-derivation method for demand forecasting?

A) Random surveys are costly and time-consuming.
B) The computer simulation can use only a limited number of market factors.
C) Demand for the product of interest must be derived from a factor that is easily measurable.
D) To use this method, an executive must be an expert in statistics.
E) Samples are easily biased.