Leonard Is Developing a Market Forecast

question 63

Multiple Choice

Leonard is developing a market forecast. After reviewing years of sales, he noticed there seems to be a clear association between past sales and households with children. The more families with children locate to the area, the more sales seem to increase. Leonard believes he can use this relationship and the information he has on households in the area to predict future sales. This is an example of what type of forecasting method?

• A) Delphi technique
• B) Executive judgment
• C) Time Series analysis
• D) Regression analysis
• E) Market test

---

Definitions:

Net Basis

A method of reporting gains and losses by setting off related items directly against each other, resulting in a net figure.

Financial Liabilities

Obligations owed to another entity, typically involving the future transfer of cash, goods, or services.

Amortised Cost

The amount at which financial assets or liabilities are measured in the balance sheet after the deduction of principal payments and plus or minus the cumulative amortization of any difference between the initial amount recognized and the maturity amount.

Effective Interest Rate

The true cost of borrowing that includes all fees and compounding of interest, expressed as an annual rate.