Many companies today employ a sales forecasting manager or sales planner to determine the sales forecasts for individual products. Forecasting managers may utilize Excel to perform _______________, where sales is the dependent variable and a variety of other factors such as company size, annual purchases, and number of years as a customer are the independent variables. Fastenal, a reseller of tools, fasteners, and other items required for manufacturers, relies on this sophisticated and mathematical approach to forecasting sales by first utilizing historical sales data incorporating a 10-year history of sales for each product category such as different brands of tools and supplies-nuts, bolts, screws, etc. The sales forecasting manager is then able to identify the relationship between the independent variables and the dependent variables to determine an accurate sales forecast.
A) regression analysis
B) time series analysis
C) statistical demand analysis
D) sales force forecasting survey

Question

Quizplus · Accepted Answer

The use of Excel and a variety of independent variables to predict sales is indicative of regression analysis. This approach allows the sales forecasting manager to identify the relationship between different factors and future sales. Time series analysis is focused on studying trends over time, while statistical demand analysis is a more general term that could encompass a variety of methods for forecasting demand. Sales force forecasting survey involves collecting input from the sales team to formulate a forecast.

Many Companies Today Employ a Sales Forecasting Manager or Sales