Theme 3 Section 13

Question 1

What are sales figures taken then put into order called

Answer 1

Time series data

Question 2

If time series data fluctuates too much what can you use to smooth it out

Answer 2

Moving averages

Question 3

What are moving averages

Answer 3

Used to smooth out fluctuations on data to identify the underlying trends

Question 4

What are 4 quarter per moving averages

Answer 4

Averages over the quarter of years

Question 5

What can 4 quarter moving averages remove

Answer 5

Seasonal variations over the year

Question 6

Why are scatter graphs and line of best fits not always good

Answer 6

E.g a strong positive correlation isn’t because one factor leads to another it could be external factors e.g change in consumer wants and needs.

Question 7

What does extrapolation rely on which isn’t good?

Answer 7

Assumption that past trends will continue into the future. Past performance don’t guarantee what’s to occur in the future.

Question 8

What factors can influence sales figures

Answer 8

Tech changes
Consumer trends
Price changes
Quality issues

Question 9

Where is extrapolation useful?

Answer 9

In stable markets where the market size doesn’t change much nor does competition