3.3.1 quantitative sales forecasting Flashcards
What is quantitative sales forecasting
Type of sales forecasting that is completely subjective and focuses on hard numerical sales data
How do you calculate moving averages
You take the data of three to four period time span.
You then add all these together and then divide by however many there are
What are some limitations of quantitative sales forecasting
- relatively short term
- dependant on the quality of market research
- less valuable in volatile markets
- don’t take external shocks into consideration
What is casual modelling
A way of plotting correlation normally on a scatter graph
What is seasonal variation
- average seasonal variation is taken from a larger longer sample and is a more accurate prediction than using smoother out trend line
What are some benefits of quantitative sales forecasting
- able to show and identify trends over a specific time period
What is variation.
This is the difference between sales and the moving averages
What is positive correlation
This is when the variables all move in the same direction
What is negative correlation
When variables move in opposite directions
What is it when you have zero correlation
There are no correlation between variable