Regarding the North American Industry Classification System:
A)It is used to forecast the sales of consumer products.
B)It classifies test markets according to their representativeness of certain types of consumers.
C)It can be used as a basis for developing a composite forecast.
D)It can be used as a basis for developing a market index.
E)None of these is true.

Question

Quizplus · Accepted Answer

The North American Industry Classification System (NAICS) is a classification of business establishments by type of economic activity. It's a tool that can be used for various analytical purposes, including the development of market indices. Market indices are often constructed to understand the performance of specific sectors or industries, and NAICS provides a structured way to categorize these sectors, making it useful for this purpose.