What is sales forecasting?
Predicting future sales revenue based on historical sales data, analysis of market surveys, and trends.
Sales forecasting is crucial for budgeting and resource allocation.
What does extrapolation involve?
Identifying the underlying trend in past data and projecting this trend forwards.
Extrapolation predicts future trends based on historical data.
What does correlation measure?
The relationship between two variables, such as advertising expenditure and sales.
A strong correlation does not imply causation.
What is time-series analysis?
Statistical methods to analyze and forecast sales, including techniques like the calculation of a 3 point moving average.
Time-series analysis is used to identify trends over time.
What is the Delphi method?
A sales forecasting technique involving multiple rounds of questionnaires sent to a panel of experts who work towards a common opinion about future sales.
Experts remain anonymous to each other to avoid bias.
