Which of the Following Depicts a Common Top-Down Approach to Forecasting

question 46

Multiple Choice

Which of the following depicts a common top-down approach to forecasting?

• A) Begin with a company's sales forecast for a specific market segment, then draw national and industry sales forecasts.
• B) Start with an industry forecast, then apply it to a specific company and its products, and subsequently draw a national income forecast.
• C) Start by developing a national income forecast; then use it to develop an industry sales forecast; then use it to develop forecasts for a specific company, its specific products, and the segments it targets.
• D) Start by developing a national income forecast, then develop a forecast for a specific company, which should lead to an industry sales forecast.
• E) None of the above.

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Definitions:

Food Supply

The total amount of food available for consumption, affected by factors such as production, distribution, and importation.

Population Growth

The increase in the number of individuals in a population, often measured in terms of the percentage change per year.

LDCs

Stands for Least Developed Countries, a term used to describe countries with the lowest indicators of socioeconomic development.

Northern Europe

A geographic and cultural region in Europe, typically referring to the northern territories including countries such as Norway, Denmark, Sweden, Finland, and Iceland.