3.31 Quantitative sales forecasting 📑 Flashcards
What is quantitative sales forecasting?
Statistical technique used dataTo make predictions about the future in terms of sales
What is timeseries analysis?
Historical data used to make predictions about the future
How do we calculate the 3 year moving average?
Take us three figures
and find the avatars then put it in line with the second figure
then go to the second figure and find the next three averages and centre it was the the second figure and carry on
How do we calculate for quarter moving average?
Find the moving average for the first four figures and then move down one and find the average for the next 4 figures
add both up then divide by 8
then Center it with the 3rd figure going down
What are the limitations of quantitative sales forecast?
It’s more reliable when
the forecast is for short period of time
People are taking account of new data regularly
market is slowly changing
market data is available for preparing the forecast
If people have a good understanding of market 
What are the five limitations that influence the accuracy of sales forecast?
Seasonality
competition
market changes to do with consumer
income or preferences
changes in legislation
