The __________ method is based on the assumption that sales follow a linear pattern. The major problem with this method, however, is knowing how much past data to include in the calculation of the forecast.
A) exponential smoothing
B) regression
C) moving average
D) percentage rate of change
E) none of the above

Question

Quizplus · Accepted Answer

Regression method is based on the assumption that sales follow a linear pattern. It uses past data to establish a relationship between sales and other variables that may impact them, and then uses this relationship to forecast future sales. This method also allows for the identification of specific factors that may impact sales, which can be helpful in developing strategies to improve sales performance. The major problem with this method is that it requires a significant amount of past data to establish the relationship between sales and other variables, and determining how much data to include can be difficult.

The __________ Method Is Based on the Assumption That Sales