E-Z Moving Company has operated in the Des Moines area for almost 20 years. To forecast the number of households it would move in 2004, E-Z's owner assumed the three percent growth rate the company has experienced in 2002 and in 2003 would continue. Which method for forecasting sales was being used in this example?
A) correlation analysis
B) past sales analysis
C) the direct-derivation method
D) linear programming
E) the Delphi method

Question

Quizplus · Accepted Answer

The method used is past sales analysis because the owner is forecasting future sales based on the growth rate experienced in previous years (2002 and 2003).

E-Z Moving Company Has Operated in the Des Moines Area