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:

Service Sector

Constitutes the segment of the economy focused on providing services instead of producing goods, including industries such as healthcare, education, and financial services.

Financial Services

Refers to economic services provided by the finance industry, including banks, credit unions, and insurance companies, encompassing a broad range of money management activities.

Manufacturing Sector

A sector of the economy that is involved in the production of goods through the processing of raw materials and assembly of components.

Production

The process of creating, manufacturing, or generating goods and services, often measured in terms of output or efficiency in an economic context.