A glass skylight manufacturer plans to forecast its product sales in new residential construction on the basis of the number of new homes, the number of skylights per home, the percent of homes with glass (versus plastic) skylights, and the firm's anticipated market share. The firm is using the chain-ratio method.

Question

Quizplus · Accepted Answer

The chain-ratio method involves breaking down a forecast into successive levels of detail, using various factors or ratios at each level to refine the forecast. The manufacturer's approach of considering the number of new homes, skylights per home, preference for glass over plastic, and market share aligns with the chain-ratio method's step-by-step refinement process.

A Glass Skylight Manufacturer Plans to Forecast Its Product Sales