3.3.1 Quantitative Sales Forecasting Flashcards
1
Q
How is time series analysis used?
A
It extrapolates past data to find out trends.
2
Q
What are the three form of trends?
A
Upwards trend
Downward trends
Constant trends
3
Q
How do you calculate moving averages
A
You need to add how ever many averages you need together then divide by how many there are.
4
Q
What are some limitations if quantitative sales forecasting?
A
Short term- data loses value over 1-2 years
Dependant on quality of market research
Doesn’t take external shocks into consideration.
5
Q
What is seasonal variation
A
This is where you have information of seasons over the last few years and helps you find a more accurate prediction than using the smoothed out line
