Which of the Following Statements Is True of Sales Forecasting

question 48

Multiple Choice

Which of the following statements is true of sales forecasting?

• A) In many cases,the best sales forecast you can come up with is an educated guess.
• B) It is better to have a high sales projection initially and adjust as actual sales happen.
• C) Using traditional retailers and distributors does not change the price you set at the factory.
• D) Ignore your capacity when identifying your potential market as you will not be serving the entire potential market.

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Definitions:

Forecast Value

The estimated or predicted value of a variable or set of variables at some point in the future.

Mean Square Error

A measure of the average of the squares of the errors—that is, the average squared difference between the estimated values and the actual value.

Sales Details

Specific information regarding the transactions, quantities, prices, and conditions under which sales activities occur.

Value of K

Often refers to a constant in various contexts, such as a specific parameter value in a mathematical formula or algorithm.