Which of the following depicts a common top-down approach to forecasting?
A) Begin with a company's sales forecast for a specific market segment, then draw national and industry sales forecasts.
B) Start with an industry forecast, then apply it to a specific company and its products, and subsequently draw a national income forecast.
C) Start by developing a national income forecast; then use it to develop an industry sales forecast; then use it to develop forecasts for a specific company, its specific products, and the segments it targets.
D) Start by developing a national income forecast, then develop a forecast for a specific company, which should lead to an industry sales forecast.
E) None of the above.

Question

Quizplus · Accepted Answer

The top-down approach to forecasting typically starts with a high-level forecast, such as a national income forecast, which is then used to develop an industry forecast, and subsequently used to develop forecasts for individual companies and market segments. This approach is depicted in option C.

Which of the Following Depicts a Common Top-Down Approach to Forecasting