Chapter 4.3 - Sales Forecasting

Question 1

Cyclical variations

Answer 1

Recurrent fluctuations in sales revenues linked to the economic cycle of booms and slumps

Question 2

Sales forecasting

Answer 2

Quantitative management technique used to predict a firm’s level of sales over a given period

Question 3

Seasonal variations

Answer 3

Periodic fluctuations in sales revenues during different times of the year

Question 4

Random variations

Answer 4

Unpredictable fluctuations in sales revenues caused by erratic and irregular factors that cannot be reasonably anticipated

Question 5

Time series analysis

Answer 5

Sales forecasting technique that attempts to predict sales levels by identifying the underlying trend from a sequence of actual sales figures