What Is a Method of Demand Forecasting That Begins by Establishing

question 68

Multiple Choice

What is a method of demand forecasting that begins by establishing a relationship between the item to be estimated and a measurable variable?

• A) probabilistic forecasting
• B) analogy
• C) simulation
• D) extrapolation
• E) scenario building

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Definitions:

Price-Earnings Ratio

is a measure of a company's current share price relative to its per-share earnings, used to evaluate if a stock is undervalued or overvalued.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt, calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.

Debt-To-Equity Ratio

A gauge for understanding the proportionate use of debt and equity by shareholders in the funding mechanisms for a company's assets.

Equity Multiplier

A metric indicating the proportion of a firm's assets funded by owner's equity.