Trend analysis predicts future sales by:
A)looking at how well the competitors are doing
B)multiplying past performance by a factor of 1.06
C)averaging the performance over the past few periods and using that to predict the next period's sales
D)using benchmarks to track how far this period's sales will exceed the previous period's sales
E)examining past sales trends and extrapolating that information into the future

Question

Quizplus · Accepted Answer

Trend analysis examines past sales trends and uses that information to extrapolate and predict future sales. This method involves analyzing patterns in sales data to identify trends and consists of statistical techniques such as time series analysis, regression analysis, and exponential smoothing. It is the most appropriate choice for predicting future sales. The other options, such as looking at competitors or using benchmarks, may be useful for gaining market insights but may not necessarily provide an accurate prediction of future sales.

Trend Analysis Predicts Future Sales By