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:

Pareto Chart

A bar graph where values are depicted in descending order of relative frequency, often used to highlight the most significant factors in a data set.

Stem-And-Leaf Plot

A graphical method of displaying quantitative data that splits each value into a "stem" (the leading digit or digits) and a "leaf" (the last digit).

Frequency Distribution

A summary of how often each value occurs in a data set, typically represented in a table or as a graph.

Dotplot

A graphical display of data using dots, where each dot represents one or more observations, allowing for the visualization of the distribution of the data set.