Which of the Following Is a Disadvantage of Using Market

question 3

Multiple Choice

Which of the following is a disadvantage of using market tests to forecast sales?

• A) Sophisticated statistical skills are necessary.
• B) A firm's strategy is revealed to its competitors.
• C) Experts are difficult to locate, motivate, and train.
• D) Resulting data is inherently biased and inconsistent.

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Definitions:

Expected Demand

The forecasted quantity of products or services that consumers will purchase in a given period, based on historical data, market trends, and other influencing factors.

Weekly Demand Distribution

Analysis or data showing the variation in demand for a product or service during the week, aiding in resource planning and inventory management.

Lost Sales

Potential sales that were not realized due to stockouts, capacity issues, or other operational constraints.

Order Policy

Order Policy includes the rules or strategies a company uses to determine when and how much inventory to reorder.