Albany Products found that the sales of one of their most important products is logically related to new construction expenditures. If the firm can forecast future values of this variable,which forecasting technique would appear to be most appropriate?

Question

Quizplus · Accepted Answer

Since the sales of the product are related to new construction expenditures as suggested, the most appropriate forecasting technique would be regression, which would help in establishing the nature and extent of this relationship, and give a forecast for future sales based on expected values of new construction expenditures. The time series method, on the other hand, is used when there is a past trend or pattern to be analyzed, and the Delphi method is a qualitative forecasting technique that relies on the opinions of experts. Trend extension is used either to project a past trend into the future or to estimate a future value based on the trend seen in historical data.

Albany Products Found That the Sales of One of Their