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Sales Forecasting
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Created by
louis marshall
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Cards (25)
What is the purpose of sales forecasting techniques?
To predict
future demand for products
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How do businesses use sales forecasting?
To anticipate consumer behavior
in various scenarios
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What can businesses predict once they have accurate sales estimates?
Human Resource Management and finance needs, production levels
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What are the two main categories of sales forecasting methods?
Quantitative
techniques
Qualitative
techniques
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When are quantitative forecasting methods used?
When
historical data
is available
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What is extrapolation in sales forecasting?
Using
historical trends to predict future sales
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What are some examples of qualitative forecasting methods?
The
Delphi technique
,
brainstorming
,
intuition
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Why is sales forecasting considered difficult?
Due to
unpredictable
external factors
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What external factors should be considered in sales forecasting?
Economic factors
(e.g., inflation, unemployment)
Consumer factors
(e.g., changing tastes)
Competition factors
(e.g., competitor actions)
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How does inflation affect sales forecasts?
It
can
lower
the
sales
forecast
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What does seasonal analysis measure in time-series analysis?
Sales on a
monthly
or
weekly
basis
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What is the focus of trend analysis?
Long-term
data trends in sales
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What does cycle analysis examine?
The
relationship
between
demand
and
economic
activity
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What does random factor analysis attempt to explain?
Unusual
or
extreme
sales figures
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What indicates a strong positive correlation in a scatter graph?
As one
variable
increases, so does the other
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What is a negative correlation?
One
variable
increases while the other decreases
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What is brainstorming used for in qualitative forecasting?
Generating new ideas and predicting
outcomes
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What does correlation measure in sales forecasting?
The relationship between two
variables
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What is the focus of a brainstorming session?
The
Problem Statement
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How many people are most effective in a brainstorming session?
Groups of
6-12
people
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What is intuition in forecasting?
Using
gut feelings
to predict
outcomes
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Who is an example of a successful entrepreneur using intuition?
Steve Jobs
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What is expert opinion in forecasting?
Insights from
specialists
in various fields
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Why are panels of experts more reliable than individual experts?
They provide a broader
range
of insights
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What are the advantages and disadvantages of the Delphi method?
Advantages:
Flexible for
various
situations
Structured
decision-making process
Better quality
responses
Disadvantages:
Time-consuming to coordinate
Assumes
consensus
among experts
Potential bias from
monetary
payments
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