Aggregating the sales of several products (product family forecasts) provides less accurate forecasts for total sales than developing separate forecasts for each product and adding up to forecast values.

Question

Quizplus · Accepted Answer

Aggregating sales data for a product family generally provides more accurate forecasts due to the reduction of variability and the cancellation of individual product forecast errors.

Aggregating the Sales of Several Products (Product Family Forecasts) Provides