DeShon Has Just Become the New Marketing Analyst for a Company

question 140

Multiple Choice

DeShon has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeShon looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeShon looks at the correlation between the sales trend data and the various combinations of demographic data. DeShon is employing the forecasting method for the sales growth trend and the method for the correlation.

• A) time series analysis; regression analysis
• B) executive judgment; regression analysis
• C) market tests; regression analysis
• D) regression analysis; time series analysis
• E) market tests; time series analysis

---

Definitions:

Competitive Firm

A business that operates in a market with many buyers and sellers, where no single entity can significantly influence the market price of goods and services.

Marginal Product

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Quantity of Land

The total amount of land available for use or development, within a specific area, which can impact agricultural, industrial, and residential development.

Marginal Product

The extra production gained by adding one more unit of a specific input while keeping all other inputs unchanged.