Answer the following statement(s) true (T) or false (F)

1. When managers are asked to make forecasts on the basis of few previous observations, they should consider non-regression-based forecasting methods.
2. Forecasting based on prior moving averages is more conservative than that based on prior moving changes.
3. When forecasting, it is best to first deflate current expenditures.
4. (Optional, Appendix) Forecasting can include periodic effects.

1.true
2.true
3.true
4.true