Your company earned sales of $10 million last year and is anticipating a growth rate this year of 12.5%.You calculate this year's sales may be $12.5 million.Which forecasting method did you use to arrive at this answer?
A)trend extrapolation
B)exponential interpolation
C)information extension
D)inductive extrapolation

Question

Quizplus · Accepted Answer

The method used to arrive at this answer is trend extrapolation, which involves using past data to identify a trend and then projecting that trend into the future. In this case, the past data was the $10 million in sales from the previous year, and the trend was a growth rate of 12.5%. Therefore, the forecast for this year's sales is $12.5 million.

Your Company Earned Sales of $10 Million Last Year and Is