Mark Is Developing a Market Forecast

question 178

Multiple Choice

Mark 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. Mark 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

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Definitions:

Depletion

The systematic allocation of the cost of natural resources over their productive lives is known as depletion, reflecting the reduction in the availability of resources as they are extracted or utilized.

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Straight-Line Method

A depreciation technique that allocates an equal amount of an asset's cost to each year of its useful life.

Commercial Substance

A term used in accounting to indicate that a transaction has caused a change in the economic circumstances of a business.