Trend Extrapolation Involves

question 78

Multiple Choice

Trend extrapolation involves

• A) extending a pattern observed in past data into the future.
• B) selecting specific points on a graph of sales or market share, multiplying by the cost of living index, and allowing for a variation of plus or minus 3 percent.
• C) averaging the total sales or market share for the previous five years and multiplying that number by the expected GDP growth rate for the next year (say 1.5 percent) to arrive at the next year's forecast.
• D) selecting a given percentage and using that number as a yearly predictive base regardless of changes in sales, revenue, or market share.
• E) collecting projections from all regional sales managers and making the final projection.

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Definitions:

Administrative Expenses

Costs associated with the general operation of a business or organization, excluding production or direct costs.

Nonprofit's Opportunity

The chance for nonprofit organizations to pursue their mission, often through funding, partnerships, or innovations that align with their goals.

Government Support

Financial or regulatory assistance provided by the government to businesses, organizations, or individuals, often aiming to promote certain economic activities or social goals.

For-profit Corporation

A type of business entity that is primarily focused on earning profits for its shareholders, contrasting with nonprofit organizations that aim to serve a social or public benefit.