In Which of the Following Situations Is Trend Analysis LEAST

question 45

Multiple Choice

In which of the following situations is trend analysis LEAST appropriate?

• A)Your company did a major product revision five years ago,and is not expected to do another one for another five years.
• B)The research and development team is introducing a new process that manufactures your product much more economically,but the new materials used in the process are more expensive,so the price of manufacturing the product will remain the same as it has been.
• C)Your product has been the industry standard for the last 20 years,and you are ahead of your competitors in making improvements that keep the product synced with current technology.
• D)A competitor suddenly introduces a product that has twice the capacity of your company's main product at two-thirds of the price.
• E)The population of your company's customer area has been increasing by a rate of 4% each year for the previous five years,and is expected to maintain this same rate of growth for the next five years.

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Definitions:

Human Capital

The competencies, insights, and background that an individual or community has, assessed based on their economic value or cost to an organization or country.

Experience

The knowledge or skill obtained from involvement in or exposure to events, activities, or specific fields of work or study.

Compensating Differential

A wage premium paid to employees to compensate for undesirable aspects of a job, such as long hours or hazardous conditions.

Window Washer

An individual or service specializing in cleaning the windows of buildings, often requiring specialized equipment for high rises.