Sales forecasting Definitions Flashcards
Sales forecasting
a quantitative technique used by businesses to predict the levels of sales that they may expect in future years
Causal model
a quantitative representation of real-world business dynamics, showing the causal relationship between an independent and dependent variable
Extrapolation
a forecasting method used by businesses to identify trends using past data and extending this information and trend to predict future data
Time series analysis
a statistical technique used by businesses to identify trends in historical data(e.g. sales revenue of previous years)
Seasonal variations
products that experience high sales volumes and variations at certain times of the year
Cyclical variations
variations in data due to cyclical changes in economic activity
Business cycle
a cycle of economic growth and recession
Random variations
variations caused by irregularities and changes in factors that have not been anticipated by the business
Simple linear regression
a mathematical method to sort out the possible factors that have an impact on future sales
Wage-price spiral
the phenomenon of price increases as a result of higher wages
E-commerce
buying and selling products over the internet
Moving average
a calculation that evens out the fluctuations in a data series to show an average
