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What Is the Purpose of the Return on Investment (ROI)calculation

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Essay

What is the purpose of the return on investment (ROI)calculation and what are its shortcomings?


Definitions:

Seasonality

The periodic fluctuations in demand or activity levels experienced by businesses, often influenced by the time of year or season.

Adaptive Forecasting

A method in forecasting that adjusts its parameters and methods based on real-time feedback and data to improve future forecasts.

Estimates Update

The process of revising predictions or calculations based on new information or changes to earlier assumptions.

Level

A specified stage or degree in a process, system, or ranking.

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