Quantitve sales forecasting

Question 1

Quantitve sales fore casting

Answer 1

making furture predictions based on trends identified from past data

Question 2

Moving averages

Answer 2

A succession of averages derived from successive segments of a series of values
-Provides total sales & averages over terms
-Help to see underliying trends

Question 3

Extrapolation

Answer 3

Extending the trend line to forecast future sales
-simple
-Assumes past = future

Question 4

Correlation

Answer 4

Using the line of best fit to identify the relationship between 2 variables
-Strong or weak depending on variatiom
-Doesn’t identify cause & effect

Question 5

Limitations of quantitative sales forecasts

Answer 5

-Market subject to disruption, e.g. tech change
-Startups have little past data
-The further into the future, the harder it is to be accurate