1. **Stating the problem:** Determine whether the statement "A time series approach to forecasting assumes that the value of a certain variable is a function of another variable" is True or False. 2. **Explanation:** A time series forecasting method uses past values of the same variable over time to predict future values. It does not assume dependence on another variable but rather on its own historical data. 3. **Answer:** Therefore, the statement is **False**. 1. **Stating the problem:** Identify the simplest forecasting method discussed in the book from the options: Regression, Moving Average, Naive, Exponential Smoothing. 2. **Explanation:** The simplest forecasting method is the Naive method, which assumes the forecast for the next period is equal to the last observed value. 3. **Answer:** The simplest forecasting method is **Naive**.