Curtis Youngblood works for Buppy's Bar B Q and is attempting to make a sales forecast for fiscal year 2007. Youngblood knows that sales increased 4% in 2005 and 5% in 2006. He also knows that consumer preferences seem to be shifting away from pork in favor of chicken. Youngblood forecasts 2007 sales to increase 2% on the basis of __________.
A) scenarios
B) extrapolation
C) the Delphi technique
D) simulations

Question

Quizplus · Accepted Answer

Youngblood is using extrapolation, which involves extending or projecting past data into the future to make a forecast. In this case, he is looking at the past sales growth percentages and adjusting his forecast for 2007 based on this trend, albeit at a lower rate due to changing consumer preferences.

Curtis Youngblood Works for Buppy's Bar B Q and Is