DeRonnius has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeRonnius looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeRonnius looks at the correlation between the sales trend data and the various combinations of demographic data. DeRonnius is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.
A)time series analysis; regression analysis
B)executive judgment; regression analysis
C)market tests; regression analysis
D)regression analysis; time series analysis
E)market tests; time series analysis

Question

Quizplus · Accepted Answer

DeRonnius is using time series analysis to forecast the sales growth trend, as he is looking at the sales data from the past five years. He is also using regression analysis for the correlation between the sales trend data and the various demographic factors. Therefore, option A is the best choice.

DeRonnius Has Just Become the New Marketing Analyst for a Company