Which of the Following Is an Example of a Qualitative

question 149

Multiple Choice

Which of the following is an example of a qualitative forecasting technique?

• A) A pharmaceutical company asks its sales force to predict the sales of a particular drug over the next six months
• B) McDonald's offers a new pulled pork sandwich in Cincinnati for the next three months
• C) A notebook manufacturer predicts the sales of notebooks this school season based on sales from the last five years
• D) A handbag retailer compares response rates to two variations of the same Instagram ad

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Definitions:

Nominal Annual Cost

The cost of a product or service stated in current year prices without adjusting for inflation or deflation.

Trade Credit

A type of commercial financing where suppliers allow customers to purchase goods or services and pay for them at a later date.

Purchase Date

The date on which an asset or security was bought.

Cash Conversion Cycle

A metric that shows the time span between a company’s purchase of inventory and the receipt of cash from accounts receivable.