3.3.1 quantitative sales forecasting

Question 1

What is quantitative sales forecasting

Answer 1

Type of sales forecasting that is completely subjective and focuses on hard numerical sales data

Question 2

How do you calculate moving averages

Answer 2

You take the data of three to four period time span.

You then add all these together and then divide by however many there are

Question 3

What are some limitations of quantitative sales forecasting

Answer 3

• relatively short term
• dependant on the quality of market research
• less valuable in volatile markets
• don’t take external shocks into consideration

Question 4

What is casual modelling

Answer 4

A way of plotting correlation normally on a scatter graph

Question 5

What is seasonal variation

Answer 5

• average seasonal variation is taken from a larger longer sample and is a more accurate prediction than using smoother out trend line

Question 6

What are some benefits of quantitative sales forecasting

Answer 6

• able to show and identify trends over a specific time period

Question 7

What is variation.

Answer 7

This is the difference between sales and the moving averages

Question 8

What is positive correlation

Answer 8

This is when the variables all move in the same direction

Question 9

What is negative correlation

Answer 9

When variables move in opposite directions

Question 10

What is it when you have zero correlation

Answer 10

There are no correlation between variable