A limitation of simple regression forecasting is the assumption that sales follow a linear pattern.

Question

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In simple regression forecasting, sales are assumed to follow a linear pattern. However, in reality, sales data may exhibit a non-linear trend or have other factors affecting its behavior. This limitation can be overcome by using other forecasting techniques such as exponential smoothing or time series analysis that can capture more complex patterns in the data.

A Limitation of Simple Regression Forecasting Is the Assumption That