Which of the Following Forecasting Methods Is Least Dependent on Historical

question 116

Multiple Choice

Which of the following forecasting methods is least dependent on historical sales data?

• A) Regression analysis
• B) Trend analysis
• C) Time series analysis
• D) Cycle analysis
• E) Market tests

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Definitions:

Pure Competition

A market structure characterized by a large number of buyers and sellers, uniform products, and free entry and exit, leading to price taking behaviour.

Excess Capacity

A situation where a firm is producing at a level less than its potential maximum output, indicating underutilization of resources.

Monopolistically Competitive

An economic scenario where multiple companies offer products that are alike but not exactly the same, providing them with a certain level of influence over the market.

P < ATC

A situation where the price of a good is less than the average total cost of producing that good, indicating a potential loss to the firm.