"We're increasing TV advertising, adding some sales representatives, and adding 3 new product models. All those things are positive. But on the negative side, we're going to increase prices across the board by 20 percent. So on balance, I think sales will increase next year by 5 percent". When a marketing student overheard this comment, she knew the person who was talking was planning to use a __________.
A)technological forecast
B)Delphi forecast
C)trend extrapolation
D)lost-horse forecast

Question

Quizplus · Accepted Answer

The person is using a lost-horse forecast, which involves making a forecast based on the assumption that past trends or patterns will continue, but also adjusting for new changes or strategies (in this case, increasing advertising, adding sales representatives and new product models, and increasing prices) without a systematic analysis.

"We're Increasing TV Advertising, Adding Some Sales Representatives, and Adding