MB-920 Describe Dynamics 365 Supply Chain Management Practice Question
Exhibit
"DemandForecast": {
"ForecastModelId": "DEFAULT",
"DemandForecastMethod": "ARIMA",
"HistoricalHorizon": 12
}Refer to the exhibit. A company uses demand forecasting with ARIMA method and a historical horizon of 12 months. What is the primary advantage of using ARIMA for forecasting?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
It models trends and seasonality in time series data
ARIMA (AutoRegressive Integrated Moving Average) is a statistical time series forecasting method that models trends and seasonality in historical data. Option A is wrong because machine learning pattern recognition is not inherent to ARIMA; ARIMA is a statistical method, not a machine learning algorithm. Option B is wrong because ARIMA does not inherently allow real-time forecast updates; it relies on historical data and requires model refitting. Option D is wrong because ARIMA does not incorporate external factors like weather; it only uses the past values of the time series itself.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
It uses machine learning for pattern recognition
Why it's wrong here
ARIMA is a statistical method, not machine learning.
- ✗
It allows real-time forecast updates
Why it's wrong here
ARIMA is based on historical data, not real-time.
- ✓
It models trends and seasonality in time series data
Why this is correct
ARIMA is designed to capture trends and seasonality.
- ✗
It incorporates external factors like weather
Why it's wrong here
ARIMA only uses historical data.
Go deeper
Related to this question
About these practice questions
Courseiva writes every MB-920 question from scratch — 930 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.