In estimating sales, the manager's first task is to estimate first-time purchases of the new product in each period. To estimate replacement sales, management has to research the product's that is, the number of units that fail in year one, two, three, and so on. The low end of the distribution indicates when the first replacement sales will take place.
A) product failure
B) survival-age distribution
C) obsolescence
D) distribution
E) product-performance usage

Question

Quizplus · Accepted Answer

The estimation of replacement sales is based on the survival-age distribution, which indicates the number of units that fail in each year after purchase. The low end of the distribution determines when the first replacement sales will occur. Options A, C, D, and E are not relevant to this task.

In Estimating Sales, the Manager's First Task Is to Estimate