4.3 - Sales Forecasting

Question 1

Correlation

Answer 1

It is a statistical process of establishing a relationship (or connection) between two or more variables

Question 2

Extrapolation

Answer 2

Is a sales forecasting technique that makes future predictions of sales (units or $) based on correlations and trends identified from using past data

Question 3

The line of best fit

Answer 3

Is a linear line used to study the nature of the relationship between two variables

Question 4

Negative correlation

Answer 4

Exists if the values of one variable in a data set increases whilst the values of another variable in the data set decreases.

Question 5

Positive correlation

Answer 5

Exists if the values of both variables in a data set move in the same direction

Question 6

Sales Forecasting

Answer 6

Is a quantitative technique used to predict a firm’s level of sales revenue over a given time period

Question 7

Scatter diagram

Answer 7

Is a visual statistical tool used to show the relationship or correlation between two variables, such as marketing expenditure and sales revenues

Question 8

Time series analysis

Answer 8

Is a statistical technique used to identify trends in historical data, such as the figures for a firm’s monthly sales revenues