3.3 Flashcards
Extrapolation
When the trend line is extended to forecast future sales
Four period moving average
The average figure based on four time periods usually quarters of the year
Line of best fit
A Line that gives roughly through the middle of all the scatter points on a graph
Moving averages
A succession of averages derived from successive segments of a series of values
Quantitative sales forecasting
Such as time series analysis involving making future predictions based on trends identified from past data
Scatter graphs
A graph showing the performance of one variable against another independent variable on a variety of occasions
Three period moving average
An average calculated by adding three periods and dividing by three
Average rate of return
A method of investment appraisal that measured the net return per annum as a percentage of initial investment
Net Present Value
Investment appraisal that takes interest rates into account by calculating NPV discounted according to interest
Investment appraisal
Evaluation of an investment project to determine whether or not it is likely to be worthwhile
Payback
The length of time a project will take to recover the initial investment cost
Decision tree
Decision making tool showing the possible outcomes of a decision with the estimated probability and expected monetary value of each outcome
Expected monetary value
The value gained from taking a decision
Probability
The likelihood of possible outcomes happening
Critical path analysis
Process of planning the sequence of activities in a project in order to discover the most efficient and quickest way of completing the project whilst ensuring that all stages are finished