Your company earned sales of $10 million last year and is anticipating a growth rate this year of 12.5%. You calculate this year's sales may be $12.5 million. Which forecasting method did you use to arrive at this answer?
A)exponential interpolation
B)trend extrapolation
C)information extension
D)inductive extrapolation

Question

Quizplus · Accepted Answer

The forecasting method used in the scenario is trend extrapolation, where past trends are used to predict future growth. The calculation is based on the assumption that the past trend will continue at the same rate in the future. This method is commonly used in business forecasting.

Your Company Earned Sales of $10 Million Last Year and Is