3.3.1Quantitative forecasting

Question 1

What is quantitative sales forecasting (time series analysis)?

Answer 1

Statistical technique which uses data to make predictions about the possible sales level in the future

Question 2

What are the uses of it?

Answer 2

-organise production
-organise staff
-organise the finances

Question 3

What are the limitations of it?

Answer 3

-past sales figures
-relies on what happened in the past so may not be a good indicator
-its time consuming and complex

Question 4

What is extrapolation?

Answer 4

Involves using past data to make predictions about the future

Question 5

What is moving average ?

Answer 5

Used to flatten out any major fluctuations in the data which could potentially skew predictions