What Would Be the Appropriate Way to Forecast Sales for a Firm

question 64

Multiple Choice

What would be the appropriate way to forecast sales for a firm that has stable year-to-year sales, but seasonally fluctuating month-to-month sales?

• A) Forecasts would need to be adjusted for a trend, but would not need a regression to adjust for seasonality.
• B) Forecasts would need to be adjusted for seasonality, but would not need a regression to adjust for a trend.
• C) Ignore both the trend and the seasonality.
• D) None of the options.

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Definitions:

Sensitivity

The quality or condition of being sensitive; the ability to perceive or feel emotions and sensations or respond to external stimuli.

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Preschool Age

The period in a child's life before they are old enough to attend kindergarten, typically between ages 3 and 5.

Rough-And-Tumble

Play that involves physical activities such as running, chasing, and play-fighting, typically among children.