BS2- Forcasting Flashcards
What is forecasting?
Is the use of existing data to predict future trends.
What can forecasts be made about?
Plans for the future, gives them a good prediction
List 3 reasons why forecasts are produced
It allows business to see the potential future
Business can prepare for what may happen next
It is a good decision making tool, allows the business to see if something may be possible or not
List 3 things that marking managers might want to know
How many sales they are producing for each campaign
There budgets for each projects
How there customers spend there time, e.g radio, tv, magazine
What are 3 types of qualitative forecasting
Consumer expectations
Sales staff forecast
Academics and business experts
What is correlation?
relationship between two variables
What is the difference between an independent and dependent variable?
Independent variable = thing you test or change; Dependent variable = thing you measure
What are 3 types of correlation?
positive, negative, no correlation
What is timer series analysis (TSA)?
It is a moving average using data over a period of time. It will then give a forecast for the future.
What is extrapolation?
Predicting data beyond the measured points
What are the possible use and limitations of forecasting?
It can be used to make decisions that will directly affect the future of the business and due to that thy want to be very accurate and realistic.
A limitation is that it is only a forecast, therefor it can only be so accurate and wont always end up being correct.
