In which of the following situations is trend analysis LEAST appropriate?
A)Your company did a major product revision five years ago,and is not expected to do another one for another five years.
B)The research and development team is introducing a new process that manufactures your product much more economically,but the new materials used in the process are more expensive,so the price of manufacturing the product will remain the same as it has been.
C)Your product has been the industry standard for the last 20 years,and you are ahead of your competitors in making improvements that keep the product synced with current technology.
D)A competitor suddenly introduces a product that has twice the capacity of your company's main product at two-thirds of the price.
E)The population of your company's customer area has been increasing by a rate of 4% each year for the previous five years,and is expected to maintain this same rate of growth for the next five years.

Question

Quizplus · Accepted Answer

Trend analysis is least appropriate in a situation where there is a sudden shift in the market, such as a competitor introducing a significantly better product at a lower price. In this case, historical trends may not be indicative of future performance, and it may be necessary to quickly adapt to the new situation rather than rely on past data.

In Which of the Following Situations Is Trend Analysis LEAST