Jill Is Trying to Predict Next Quarter's Sales for Her

question 4

Multiple Choice

Jill is trying to predict next quarter's sales for her company by analyzing five years of previous sales data. Which specific forecasting technique should Jill use?

• A) regression models
• B) customer evaluation
• C) substitution effect
• D) economic indicators
• E) time series analysis

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Definitions:

Exponential Smoothing Model

A time series forecasting method that applies weighted averages of past observations, giving greater weight to more recent data, to predict future values.

Mean Absolute Percentage Error

A measure used to evaluate the accuracy of forecasting models, expressing the average absolute percent error between predicted and observed values.

Sales Details

Specific pieces of information related to the transactions of sales, including quantities sold, prices, dates, and customer data.

Game Sales

The total revenue generated from the sale of video games within a specified period.