3.3.1 Quantitative sales forecasting Flashcards
1
Q
What are the 3 methods of quantitative sales forecasting?
3
A
- Moving averages
- Extrapolation
- Correlation (scatter graphs)
2
Q
When is calculating moving average (trends) useful?
1
A
- Strong seasonal patterns
3
Q
What are examples of possible correlational links between variables?
2
A
- Sales and advertising expenditure
- Sales and temperature
4
Q
What are the limitations of quantitative techniques?
2
A
- Future not like past (external factors)
- Decision making can >quality of forecast e.g. if dip in trend growth = continue in LT or be ST
